Tata Digital, a unit of India’s Tata Sons, has acquired a majority stake in online grocer BigBasket.
The deal, which is said to be worth $1.31 billion, has given Tata Digital a 64.3 percent stake and resulted in a buyout of Alibaba’s ownership in the grocery company.
India’s antitrust body approved the deal in March this year, Reuters reported.
The acquisition puts the Indian multinational company in direct competition with both international players such as Amazon, Walmart as well as domestic players such as Flipkart and Reliance Industries.
The four players have been in an intense battle to capture a larger share of consumers’ eCommerce spend across a variety of verticals. The ongoing pandemic has resulted in a significant shift in how Indian consumers shop and pay in their day-to-day lives.
Tata’s grocery venture will further entrench the company’s presence in the Indian market. Today, the company sells a variety of products and services, ranging from table salt to automobiles and even software. According to reports, Tata is preparing to launch a super app that will tie its various consumer product offerings — a move that will mimic other players such Grab in the South-East Asian market that have launched various super apps in recent years.