Competition Escalates in the E-Grocery Space as Tata Eyes Majority Stake in Bigbasket
Tata Group is in advanced negotiation with BigBasket to take a controlling stake in India’s largest e-grocer. The Bengaluru-based company is likely to acquire around 50% stake by paying about $1 billion to BigBasket.
China’s Alibaba, the largest investor in BigBasket, is expected to sell its entire shareholding of 26% in the company after the deal. The e-grocery space has become highly competitive with players like Reliance Industries Ltd, Walmart-owned Flipkart, and Amazon desperate to take leverage of the market, which is rapidly growing after the pandemic.
BigBasket said that new customers on the platform have increased by 84% between January and July. The company is planning to launch a new platform with upgraded features by December or January. The company is heading towards various investments and collaborations as well.
Private equity funds Temasek and Generation Investment Management is also in talks to invest in the e-grocer giant. The collaborations will provide the recently-turned unicorn an opportunity to stay ahead of rivals like Reliance, Flipkart, and Amazon.