Tata Group acquires India's online grocery leader BigBasket for $1.2 billion

Tata Group acquires India's online grocery leader BigBasket for $1.2 billion

The Economic Times of India reported in February that Tata Group had finalized a deal to acquire a majority stake in BigBasket for $1.2 billion , of which $ 200 million to $250 million would be in cash . At the time, both parties to the transaction were waiting for approval from the CCI ( Competition Commission of India ) .

 

And now, one of the largest acquisitions in India’s digital industry has finally come to an end! According to DealStreetAsia, India’s CCI has approved Tata Group’s acquisition of 64.3% of the shares of e-commerce platform BigBasket , which also makes BigBasket’s post - financing valuation $1.8 billion.

 


The approval of this acquisition also fired an important shot in the battle among giants in the rapidly growing Indian online grocery market.

 

The acquisition will be made through Tata Digital , a subsidiary of the Tata Group , through a mix of primary and secondary shares to acquire a 64.3% stake in BigBasket's B2B subsidiary Supermarket Grocery Supplies, which reportedly operates BigBasket's online retail business, giving the Tatas group control over both the wholesale and online retail business units.

 

BigBasket, currently the leader in India's online grocery space , said it had surpassed $1 billion in annual revenue in the year ended September , driven by growing demand for online groceries due to the COVID-19 pandemic .

 


After the acquisition is completed, the newly formed company may also become India's largest food and grocery e-commerce platform , which will enable the Tata Group to compete directly with Reliance's Jio Mart, Amazon and Walmart's Flipkart, and Grofers backed by SoftBank Vision Fund .

 

While Amazon and Flipkart have a much larger footprint, their online grocery businesses have always been a small part of the business, even as they too have been working hard to grow over the past two years .

 

According to market researcher RedSeer Consulting, India’s grocery market was worth more than $600 billion in 2019 and is expected to reach $850 billion by 2025. However, 95% of the market is dominated by corner stores that are not controlled by organized retailers , which provides significant room for growth for organized players .

India

Acquisition

Online Grocery

<<:  Etsy's first-quarter sales increased 144%, and its growth in the United States is encouraging

>>:  U.S. retail online sales increased 20% year-on-year in April, and Amazon updated its logistics requirements for small and light commodities

Recommend

What is Lianke Technology? Lianke Technology Review, Features

Shenzhen Lianke Technology Co., Ltd. was officiall...

What is REVOLVE? REVOLVE Review, Features

Revolve was founded in 2003 by Michael Mente and ...

What is Gearbest? Gearbest Review, Features

Gearbest is a cross-border B2C comprehensive e-com...

What is India Tax (GST)? India Tax (GST) Review, Features

GST stands for Goods and Services Tax, which can b...

What is Nomatic? Nomatic Review, Features

Nomatic is an American luggage brand headquartere...

What is Yellow Pages Scraper? Yellow Pages Scraper Review, Features

Yellow Pages Scraper is a very powerful foreign tr...

What is The Warehouse? The Warehouse Review, Features

The Warehouse is a warehouse-style grocery superma...

What is Sponsored Brands? Sponsored Brands Review, Features

Sponsored Brands is one of the advertising types i...

What is Yuemei Logistics? Yuemei Logistics Review, Features

Yuemei Logistics is a Shenzhen freight forwarding...

Wildberries’ popularity index in the Russian e-commerce market is 83%.

With the onset of the epidemic in the spring of 2...