Tata close to striking deal with BigBasket for around 80% stake: Report

After five months of negotiations, the Tata group is close to striking a deal with BigBasket for around 80 percent stake in exchange for around $1.3 billion. The deal will value India’s largest online grocery store at around $1.6 billion.

Tata group may buy 50-60 percent stake from existing investors, including Chinese giant Alibaba and a few other investors, Livemint reported, citing sources.

Read: Online Grocery: What is the next frontier of growth?

"Tatas will infuse fresh money into BigBasket by buying new shares of about 20-30 percent of BigBasket, which will give Tata group almost 80 percent in BigBasket. The deal is likely to be formally announced in the next few weeks," a source told the newspaper.

Interestingly, Tata Sons Chairman N Chandrasekaran had earlier said that the conglomerate was planning a "super-app" to consolidate its consumer brands.

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"The deal will also help the Tata group in conceptualizing its proposed ‘Super App’ by adding a wide range of household items and grocery products from BigBasket," another person told the publication.

"The ‘super-app’ would offer services such as food and grocery, fashion, electronics, insurance, financial services, education, healthcare and bill payments," Chandrasekaran had said at the company’s annual meeting this year.

Also read: Walmart in talks for $25 billion investment in Tata’s super app

A Tata group spokesperson declined to comment, while emails and text messages sent to BigBasket founder Hari Menon remained unanswered, the report said.

Moneycontrol could not independently verify the report.