Tata Sons has acquired a majority stake in online grocery seller BigBasket through its subsidiary Tata Digital. The stake in BigBasket pits Tata against other rival bigwigs such as Amazon, Flipkart, JioMart and SoftBank-backed Grofers.
While Tata Digital did not disclose the details, regulatory filings show that it has acquired 64 per cent stake in Supermarket Grocery Supplies, the online grocer's business-to-business entity.
"Grocery is one of the largest components of an individual's consumption basket in India, and Bigbasket as India's largest e-grocery player, fits in perfectly with our vision of creating a large consumer digital ecosystem. We are delighted to welcome Bigbasket as a part of Tata Digital," said Pratik Pal, CEO of Tata Digital.
Hari Menon, co-founder and CEO of BigBasket, said the company was "extremely excited" about its future as part of Tata Group. "As a part of the Tata ecosystem, we would be able to build a stronger consumer-connect and accelerate our journey," he said.
E-grocery has been a rapidly growing space, but with the COVID-19 pandemic and resultant lockdowns, things have picked up. This deal comes at a time when there's been a significant shift to online shopping, especially for essentials like food and groceries.
The Competition Commission of India had approved Tata Digital's offer of acquiring 64.3 per cent stake in Supermarket Grocery Supplies Private in April.
The Bengaluru-based online grocery platform was founded in 2011 and has its presence in 25 cities.