Tata-BigBasket deal: Acquisition of BigBasket

Big Basket acquired by tata

At a time when online shopping is at an all-time high, Tata adds BigBasket to their cart. The Tata Group has acquired a 64.3% stake for INR 9,500 Cr in the online grocery platform, BigBasket. From salt to aviation, Tata is a behemoth. But the next move is reportedly a super-app. For this Tata has to make its mark in the e-grocery space and it seems to have BigBasket as the ideal investment.

This Tata-Bigbasket deal is a game-changer! Tata Sons, through its group entities, is already involved in the business of selling food, household products and personal and beauty care products. But the BigBasket acquisition is predicted to give Tata an immediate head-start to take on bigger rivals – Reliance Industries Ltd, Amazon and Flipkart in the household and grocery retail space.

Tata may infuse additional capital into BigBasket, which may enhance its effective holding to about 80% or more. On the other hand, BB can take advantage of Tata’s capital, manpower and logistics. Talk about a win-win!

So why did a 152-year-old corporation invest in a 10-year-old startup?

There’s no doubt about the tremendous brand equity that the Tata Group enjoys in India. But unlike new-age companies like Paytm, Amazon, and Flipkart, Tata hasn’t been able to move fast with the changing consumer requirements. In order to become parallel with JioMart and the up-and-coming Amazon Pantry, Tata’s acquisition will play a big role. E-grocery will be their comeback. This is a last-resort fight with the other big giants. Especially for the Covid and the post-covid world, Tata needs to step into this new era to stay strong.

Tata just went from old commerce to e-commerce. But only time will tell if this Tata-BigBasket deal will be cut out for competition. Ultimately, whether we do sabzi shopping online or from a bhajiwala, getting free dhaniya-mirch is our only concern.

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