The Competition Commission of India (CCI) on Thursday approved Tata Group’s $1.2 billion acquisition of a majority stake in online retail grocery startup BigBasket.
Tata Digital can acquire up to 64.3 per cent of the total share capital of Supermarket Grocery Supplies Private Ltd (SGS). SGS can acquire managment control over Innovative Retail Concepts Private Ltd, which operates BigBasket’s online retail business.
The approval will allow investors such as China’s e-commerce giant Alibaba, which holds around 29 per cent stake in BigBasket, to exit the company.
According to a report by RedSeer and BigBasket, India’s e-grocery market is expected to grow from $1.9 billion in 2019 to $3 billion by the end of 2020. At an annual growth rate of 57 per cent, it is expected to touch $18 billion by 2024.
With big names including Tatas, Amazon, Reliance and Walmart-owned Flipkart making their presence felt in this space, e-grocery is emerging as one of the most coveted retail segments.
Supermarket Grocery, the holding company of BigBasket, had reported a consolidated net loss of Rs 611 crore in 2019-20. The company posted a 36 per cent jump in revenue at Rs 3,822 crore in 2019-20, according to business intelligence platform Tofler.