Tata Sons Pvt. Ltd is going to invest in BigBasket, the largest online grocery store of India, in a deal valued over $1 billion. Tata Sons Pvt. Ltd. has already filed the deal to Competition Commission of India (CCI) for approval.
What is the deal between Tata and BigBasket?
The deal is between Tata Digital Ltd, digital services subsidiary of Tata Sons, and Supermarket Grocery Supplies Pvt. Ltd (SGS). Tata has revealed its interest in buying 64.3% stake in SGS that deals with the commercial service branch through business.bigbasket.com. The deal will allow SGS to manage Innovative Retail Concepts Pvt. Ltd (IRC) that controls the retail side of the business through bigbasket.com.
Together SGS and Innovative Retail Concepts Pvt. Ltd deal in household items, personal and beauty care products, food, and grocery items through the BigBasket app.
What is the size of the deal?
According to inside sources, Tata is investing around $1 billion for buying 64.3% stake but they can infuse more capital to increase their stake within one year. Tata is interested in increasing its holding up to 80% or even bigger.
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