(Image Source: Economic Times)
Tata Digital announced last Friday that it acquired a 64% stake in the giant online grocery provider, BigBasket. This deal gives India’s biggest conglomerate a huge advantage in the competition with long-established e-commerce players.
Tata Digital did not disclose the financial details of the deal. However, it has been reported that BigBasket has received the first tranche of $200 million from Tata Digital at a $2 billion valuation. This acquisition is a part of Tata’s plan of developing its digital ecosystem.
“Grocery is one of the largest components of an individual’s consumption basket in India, and BigBasket, as India’s largest e-grocery player, fits perfectly with our vision of creating a large consumer digital ecosystem,” said Pratik Pal, Chief Executive Officer of Tata Digital.
As for BigBasket, the company is also very excited about what the deal will bring.
“As part of the Tata’s ecosystem,” Hari Menon, BigBasket’s CEO said, “we would be able to build stronger consumer connect and accelerate our journey.”
Tata Digital is still in the search for other big digital players in India. It will soon acquire the online pharmacy 1mg into its ecosystem. Health-and-fitness startup Curefit is also in their sights.