In a report, the Economic Times reported citing three sources familiar with the matter at hand as saying, India’s salt-to-software conglomerate Tata Group is in advanced talks to acquire to a majority stake in Indian online grocery startup BigBasket for around $1 billion.
Tata Group has plans on launching a “super app” that ties all of its consumer businesses, said several media reports. The development comes at a time when the conglomerate is ramping up efforts to fight Amazon and Reliance Industries who have all made big bets on the booming Indian e-commerce market.
Bengaluru-based BigBasket competes with Walmart Inc-owned Flipkart and Amazon’s “Fresh” service with consumers choosing to remain indoors and shop online because of the coronavirus-induced COVID-19 pandemic.
Both, Tata Group and BigBasket did not immediately respond to requests for comments.
Alibaba, which has a 26% stake in BigBasket, is expected to sell its entire shareholding in the company, reported a report from the Economic Times.
“While the talks have been ongoing for some time, it is still work-in-progress as far as the specifics go. It may eventually not lead to a transaction at all,” said the report citing a source.