Tata Group is in advanced talks to tie up with bigbasket.com, as the conglomerate attempts to catch up with rivals, Amazon & Reliance Retail. The salt to technology conglomerate is looking for a minority stake (20%) & 2 board seats in BigBasket, as the online #grocery unicorn is looking to raise $200M in growth capital. BigBasket has appointed Goldman Sachs & Morgan Stanley to raise funds as it is eyeing a valuation of $2B
Last yr, BigBasket raised $150M at a valuation of $1.2B with the existing investor Alibaba Group
In the current state, it is in talks to rope in new investors for a $350-400M financing round to boost its valuation 33% to around $2B. It expects to double its revenue to $1B by Mar’21!
The Tata Group too has been looking to ramp up its online presence as the 152-yr-old Group has been in talks with Walmart for a $25B #investment in its super-app. Driven by the pandemic, eGrocery has been clocking 1.7 times in gross merchandise value as of June’20 as opposed to Jan’20
As per RedSeer, just 0.3% of Indian grocery spending currently takes place online. The market size is expected to grow from $1.9B in 2019 to $18.2B by 2024
Do you think taking a stake in Bigbasket would bolster Tata’s super-app to fight with Indian rivals like Reliance Retail?