BENGALURU:
Tata Group will buy a 68% stake in online grocery startup
BigBasket
for about Rs 9,500 crore ($1.31 billion), news agency ET Now said on Tuesday, 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.com Inc
and
Reliance Industries Ltd in India's booming e-commerce market.
Bengaluru-based BigBasket competes with Walmart Inc-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 Rs 13,500 crore for BigBasket, which is backed by Alibaba, the report 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.
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