Tata Digital acquires Indian e-grocer BigBasket to fuel super-app ambition

Tata Digital, a unit of Tata Group’s investment investment holding company, has acquired a majority stake in online grocery firm BigBasket for an undisclosed sum.

The acquisition will fuel Tata Group’s plan to create a digital consumer ecosystem across categories including online food and grocery. The deal could raise BigBasket’s valuation to between US$1.8 billion and US$2 billion.

Founded in 2011, BigBasket operates a farm-to-fork supply chain with over 12,000 farmers and several collection centers across India to deliver fresh fruit and vegetables. It provides over 50,000 stock keeping unit assortments and also offers home delivery to consumers on preferred dates and timeslots.

“E-grocery has been one of the fastest growing segments in the consumer ecommerce space, and its growth is propelled by India’s rising consumption and digital penetration,” the companies said in a joint statement.

Health issues and pandemic-induced lockdowns are also turning consumers toward internet-based, at-home solutions, accelerating the adoption of ecommerce, digital payments, grocery delivery and other online channels.

In October 2020, BigBasket was reportedly in talks to sell a 50% stake in the company for roughly US$1 billion. Chinese tech titan Alibaba is also expected to divest all of its roughly 26% stake in the e-grocery startup.

See also: Super apps in India: How do the competitors stack up?

Meanwhile, it was also recently reported that Tata Group is looking to acquire health and fitness startup Curefit. This in line with the Indian conglomerate’s broader ambition to launch its own super app and gain an early advantage over other players.

BigBasket is also set to do an initial public offering in the coming years as it looks to make an exit for existing investors.