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India’s Tata Group to buy majority stake in BigBasket for $1.3bn

India’s Tata Group will buy a 68-per-cent stake in online grocery startup BigBasket for about US$1.31 billion, television channel ET Now has reported, citing sources.

The salt-to-software conglomerate has been planning to launch a “super app” that will tie in all its consumer businesses, according to media reports, as it competes against Amazon and Reliance Industries in India’s booming e-commerce market.

Bengaluru-based BigBasket competes with Walmart-owned Flipkart and Amazon’s “Fresh” service as more consumers stay indoors and choose to shop online during the Covid-19 pandemic.

Tata’s stake will translate into an enterprise value of $1.85 billion for BigBasket, which is backed by Alibaba, ET Now said.

BigBasket top management, including co-founder Hari Menon, are likely to stay on for three to four years, according to the report.

Tata Group and BigBasket said they had no comments on the matter.

  • Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Ramakrishnan M, of Reuters.

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