Tatas in talks to invest in BigBasket1 min read . Updated: 14 Oct 2020, 02:18 PM IST
- Tatas interest in BigBasket comes at a time when the group is looking to enter the online commerce market in a big way
MUMBAI : The salt to technology conglomerate Tata Group has joined the conversations to pick up a minority stake in online grocer BigBasket, which has been looking to raise $200 million in growth capital, two people aware of the development told Mint.
“Tata group, Temasek and Generation Investment Management are in advanced talks with BigBasket. The deal size is around $200 million, which will be entirely primary capital to boost the company’s growth," said one of the people cited above, requesting anonymity.
BigBasket has seen strong tailwinds due to the covid-19 pandemic and the lockdowns, as more customers are now preferring to shop online for groceries, the person added.
Spokespersons for Tata, Temasek, Generation Investment Management and BigBasket could not be immediately reached for a comment.
Tata’s interest in BigBasket comes at a time when the group is looking to enter the online commerce market in a big way.
In August, The Financial Times reported that the Tata Group is preparing a new platform, aimed for a December or January launch, that will put together the company’s varied offerings together onto a single platform.
“It will be a super app, a lot of apps in apps and so on . . . We have a very big opportunity," Tata Sons chairman Natarajan Chandrasekaran told Financial Times. The app would eventually encompass services from food and grocery ordering to fashion, lifestyle, electronics, insurance, financial services, education, healthcare and bill payments, Chandrasekaran said.
Mint reported on 25 May that BigBasket has “appointed Goldman Sachs and Morgan Stanley to help raise funds and that the online grocer is eyeing a valuation of $2 billion in its latest round.
Last year, BigBasket raised $150 million at a valuation of $1.2 billion in a round that saw participation from South Korea’s Mirae Asset-Naver Asia Growth Fund, UK’s CDC Group, and existing investor Alibaba.
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