The Indian Business Tata Group which has known for acquiring a lot of startup companies and signing business deals with them. Tata Group is now entering the retail space by buying the E Grocer Startup Brand Big Basket.
Big Basket is a popular online grocery delivery application. The E Grocer Company mainly delivers groceries, home essentials and food supplies to their consumers.The Company was founnded in 2011 and its headquarters is based in Bangalore,India.
The founders of Big Basket are Hari Menon, V.S Sudhakar, Vipul Parekh, Abhinayss Choudhari and V.S Ramesh. Big Basket is currently active in 25 Indian Cities.
How much stake is The Tata Group acquiring from Big Basket?
The Tata Group shall be acquiring 68% stake in EGrocery Platform BigBasket for Rs 9,500 crore. Big Basket’s enterprise value as a company is more than Rs 13,500 crore.
The value of this deal is worth 1.2 Billion$ and Tata Group will get a stake around 60-63%.The business transaction is basically a mix of Primary and Secondary Sales of Share.
The deal between Tata and the E Grocer company took place on January 20, 2021 and on October 28, 2020.
When will Tata Acquire Big Basket publicly?
Tata Group plans to acquire Big Basket publicly by 2022 as per the terms and conditions of the business deal.
Who are the prominent stakeholders in Big Basket currently?
Former Investors of Big Basket are Alibaba and Abraaj Group. Alibaba is a renowned Chinese E-Commerce website and Abraaj Group is a private equity firm.
Alibaba has a 27.58% stake in the startup company, while Abraaj owns up to 18.5%. These two investors will be required to give the Tata Group the majority and major stake in Big Basket.
Who are the competitors of Big Basket in the Retail Space?
Amazon’s Pantry, Supermart Inc-owned Flipkart, Grofers, Nature’s Basket, Big Bazar, D-Mart, Zopnow, Spencers, Easyday, Reliance Fresh, Star Bazar, and Hypercity.
How did Big Basket cope up during the Pandemic?
Big Basket saw that the number of new customers on their application increased by 84% during the Pre Covid time. It also witnessed the processing of more than 20 million orders per month and had a turnover of 1 Billion$ as its annual revenue.
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