NEW DELHI: Battle for India Online food market is set to be as intense Tata Sons has acquired majority stake in online grocery sellers BigBasket. This puts the Indian business giant in a direct race with e-commerce gamers Amazon.com, Walmarts Flipkart and Reliance Industries. The deal comes about as e-commerce sales, especially groceries and groceries, have seen a huge jump due to a major shift to online shopping sparked by the COVID-19 pandemic.
Here are the key details about the business:
* BigBasket Board has reportedly given its approval Tata GroupAcquired a majority stake in the online food company. BigBasket was founded in 2011 and operates in 25 Indian cities.
* The stake was bought by Tata Digital Limited (TDL), a unit of Tata Sons.
* Under the terms of the agreement, TDL will acquire up to 64.3% of the total share capital of Supermarket Grocery Supplies Pvt Ltd (SGS) as well as SGS sole control of Innovative Retail Concepts Pvt Ltd. Sales through bigbasket.com
* The Chinese giant Alibaba is the main investor in e-tailers with a share of around 30%. The deal includes TDL buying Alibaba’s stake. The acquisition of Tata Digital came after the Indian government tightened regulations on Chinese investment in Indian companies in 2020. This prevented Alibaba from increasing its stake. The other large investor in BigBasket is Actis with a stake of around 17%.
* In March of this year, the Indian Competition Commission of India (CCI) approved the acquisition of up to 64.3% of BigBasket by Tata Digital. Transactions that exceed a certain percentage of the stake must be approved by CCI.
* According to media reports, the deal is worth 9500 rupees ($ 1.31 billion).
* Major players in India’s online grocery market are: Amazon, Flipkart, Grofers and JioMart from Reliance Industries.