Mumbai, Feb 16: Tata Group is in the final stages of acquiring a majority stake of 68 per cent in online grocer BigBasket for about Rs 9,300-9,500 crore, said a source close to the development.
According to the deal, the biggest in the online grocery space so far, BigBasket has been valued at Rs 13,500 crore. The deal will also give exit to investors Alibaba, Abraaj and IFC and is likely to be closed in the next 4-5 weeks as the parties are awaiting approval from the Competition Commission of India.
The top management, including cofounder and CEO Hari Menon, will continue to stay on board, said the source. The Tata Group and BigBasket denied to comment on the matter.BigBasket perfectly fits the criteria for the Tata Group, which has been looking at serious online play, with Chairman N Chandrasekaran talking about ambitions of a super app.
“Our e-commerce play will be really big and we’ll not contend with a minor stake in any company,” a Tata Group spokesperson had last year said in response to a potential stake purchase in BigBasket.“BigBasket has created a significant presence in the online space that has got certified further in the past 12 months. For Tatas to make a transition from a physical to a digital space, an inorganic route makes more sense,” said Devangshu Dutta, Chief Executive of Third Eyesight.
Source: BS