April 3, 2021
The Competition Commission of India (CCI) cleared Tata Digital’s acquisition of a majority stake in BigBasket without conditions. Tata Digital’s interest in BigBasket first became public last October. The acquisition of a 64.3% stake in BigBasket will make Tata Digital the leading player in e-grocery, setting the scene for a big battle with Amazon, Flipkart, JioMart, and Softbank-backed Grofers.
Tata Digital is a 100% arm of Tata Sons, the promoter of the $106-billion airline to automotive conglomerate. It will acquire 64.3% in BigBasket’s online business-to-business arm Supermarket Grocery Supplies (SGS), the CCI said. Later, SGS will acquire ‘sole control’ over Innovative Retail Concepts (IRC), which is engaged in business-to-consumer sales through the BigBasket website.
The acquisition, estimated to be worth $1.2 billion, bolsters the Tata conglomerate’s digital play as coronavirus-induced lockdowns and curfews propel India’s online shopping market.
The pandemic has accelerated the adoption of technology, changing the way people live, work and consume as well as how companies operate.
Tata Digital’s acquisition in BigBasket comes after India tightened regulations for investments from Chinese entities. This has restricted Alibaba from upping its stake in the Indian e-grocer.
BigBasket will give wings to Tata conglomerate’s digital play along the lines of a super app, which will provide customers a single point of access to a range of services including Qmin (a food delivery platform), Tata CLiq (a lifestyle online shopping site) and Croma (an electronics e-store). The super app will be launched by Tata Digital in the fiscal year 2022.