Tata Group; one of India’s leading enterprises; is believed to be in talks with BigBasket to acquire stakes in the company. BigBasket is one of India’s top online grocery startup companies.
Sources have said the century-old company is preparing to launch a “super app,” one which will connect all its customer companies, as it tries to compete against Amazon and Reliance, that have made a large bet in India’s flourishing e-commerce market.
According to the reports, BigBasket; established in Bengaluru, is aiming to boost $200 million (approximately Rs. 1,465 crores) for a new funding round; which could theoretically place the start-up at almost $2 billion ( approximately Rs. 14,652 crores).
Owing to the ongoing coronavirus pandemic, people have decided to buy online; BigBasket, therefore, has been in competition with Flipkart; owned by Walmart; and Amazon’s newly launched ‘Fresh’ service.
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Tata Group is an Indian group of industries based in Mumbai, India. Established by Jamsetji Tata in 1868, after buying many global businesses, the company has gained international recognition over the years. Tata Group is owned by Tata Sons, one of India’s largest conglomerates.
In all probability; the deal is a pre-IPO round, as well as a public offering and is planned in 18 months. Reports have also stated that Singapore’s Temasek and Generation Investment Management of private equity were in talks to participate in the fundraiser.
In 18 months, a public listing is planned, the report said.
Temasek and other agencies involved in the deal; have refuted from officially commenting about the same.
Tata Group has been looking for occupying stakes; in IPO Bound Online Grocer BigBasket; for a while now.
Furthermore, it is also reported that by the end of this month; BigBasket and Tata Group will together settle on an agreement; with the aim to close the deliberations over the deal. This deal; between the two leading Indian companies; is likely to bring about a new digitally dominated wave in the county.