Key Points:
- Tata group is said to be in discussion with Big Basket.
- This is for the Tatas to make their place stronger in the digital section.
- The decision might be out by the end of October.
- BigBasket is a Bangalore based service, delivering in almost 26 cities of the country.
- The pandemic has flourished business for Big Basket this year which can turn out to be a great investment for the Tatas’.
Tata Group is in talks to tie up with Big Basket, an Indian online groceries store. This move is said to catch up with the rivals that include Amazon and also Mukesh Ambani’s speedily expanding retail territory.
India is in lockdown since almost 8 months and citizens are turning themselves towards online shopping. Tata’s partnership with Big Basket that valued $ 1.3 billion this year can strengthen Tata’s digital store.
Tata and Big Basket would take a decision on the deal by the end of October, said a person knowing about the topic to The Financial Times. It is also said to be a “Strategic Relationship” with the conglomerate potentially receiving a 20% stake plus two board seats.
Big Basket is based in Bangalore which operates in 26 Indian cities. Big Basket turned out to be in profit during the Covid-19 pandemic. The firm expects to almost double its revenue to $1bn in the financial year ending March 2021.
People are turning to Big Basket due to the pandemic and are finding it more convenient to order than to go and visit physical stores.
Having an e-grocer like Big Basket might help the app become more abundant in the market, as it will become more reachable to the average Indian.
“It will be a super app, a lot of apps in apps and so on . . . We have a very big opportunity,” Tata Sons chairman Natarajan Chandrasekaran told Financial Times.
The merged app would eventually include services from food and grocery ordering to fashion, lifestyle, electronics, insurance, financial services, education, healthcare and bill payments, Chandrasekaran said.
Both the sides are still seen quiet on the decision but the decision may be out within the next weeks.
