Tata Group to invest in BigBasket

Tata Group is in talks with BigBasket to pick up a minority stake in one of the India’s major online grocery store. As per some media inputs, BigBasket has been looking to get investment worth $200 million in growth capital. Generation Investment Management, Tata group and Temasek are in advanced talks with BigBasket. The deal market value is almost $200 million. To boost the company’s growth, this will be completely primary capital. On account of the Covid-19 and the lockdowns, BigBasket has seen strong market growth. This is because more and more consumers are giving preference to shop online for groceries. The online grocer is eyeing a valuation of $2 billion in its latest round.

Tata’s curiosity in BigBasket has come at a time when it is eyeing to enter the online commerce market in a huge way. Apart from this, according to some sources, Tata Group is working on a new platform, meant for a December or January launch. This will bring together the company’s diverse offerings together onto a single platform. According to Tata Sons Chairman Natarajan Chandrasekaran, it is going be a super app, a lot of apps in apps and so on. He further stated that eventually the app will include services from lifestyle, electronics, insurance, financial services, education, food and grocery ordering to fashion, healthcare and bill payments.

Before this, BigBasket had appointed Goldman Sachs and Morgan Stanley in May to help raise funds. BigBasket raised $150 million at a valuation of $1.2 billion last year in a round. The round witnessed participation from UK’s CDC Group, South Korea’s Mirae Asset-Naver Asia Growth Fund, and current investor Alibaba.

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