Tata is in talks to acquire 20% stake in BigBasket

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In this time when Covid-19 has disrupted the majority of the sectors in India some of the sectors like IT and retail are growing at such a fast pace that no one expected before. Many huge companies like Reliance and Amazon are running to chase the big piece of the retail market. And now another company is all set to join this race along with Amazon and Reliance and this company is Tata.

The Tata group is going to buy a stake in the huge grocery company of India, BigBasket. Like Reliance bought Future Retail recently, this step is going to be a huge step for the Tata group too. This step of Tata is going to give tough competition for both Amazon and Reliance because both the companies are involved in expanding themselves in the retail sector.

This news is going to be final by the October end as now both the companies Tata and BigBasket are talking on the same matter and the final decision is expected by October end. According to reports, one person said that this deal will result in a strategic relationship and the deal will result in Tata gaining 2 board seats and will also by 20% stake in the BigBasket.

BigBasket has its headquarter in Bengaluru and is present all over India and according to the reports BigBasket is going to initiate a new round of funding with investors of around $400 million and in this Tata would be one of the investors that would play a major role.

This deal with BigBasket can help Tata to grow a lot as this retail sector or we can say the e-grocery sector is all set for a great online push. In August, the Tata group announced that they are going to have a single super-platform for all the offerings they do, this means that each and every type of offering that Tata makes will be available on a single platform. “It will be a super app, a lot of apps in apps and so on,” he had said Natarajan Chandrasekaran, chairman at Tata Sons.

A transaction with BigBasket could help the Tata group tap into a growing e-grocery market as it is preparing for a big online push. In August, Natarajan Chandrasekaran, chairman at Tata Sons, told Financial Times that the Tata group is planning to launch a super app that will host all its consumer offerings on a single platform. “It will be a super app, a lot of apps in apps and so on,” he had said.