The Competition Commission of India (CCI) recently approved acquisition by Tata Digital Limited of up to 64.3% of the total share capital of Supermarket Grocery Supplies Private Ltd (SGS) and its sole control over Innovative Retail Concepts (IRC), which is the company that runs BigBasket.
EBNW Business Desk
As Tata Sons’ have received approval to acquire a majority stake in Alibaba-backed BigBasket from the Competition Commission of India (CCI), it augments a battle of the giants in the country’s fast-growing online grocery segment.
Tata Sons subsidiary Tata Digital wanted to purchase a 64.3 per cent stake in Supermarket Grocery Supplies, the business-to-business arm of BigBasket. It was through a mix of primary and secondary share purchases.
Supermarket Grocery Supplies is likely to acquire sole control over Innovative Retail Concepts which operates BigBasket’s online retail business. So Tata will get control over both wholesale and retail business units.
It is likely to provide a full exit to two of BigBasket’s biggest investors — Chinese e-commerce giant Alibaba. It holds a 27.58% stake. Actis LLP is has acquired several portfolios of scandal-hit Abraaj Group, and it owns an 18.05% stake in is BigBasket. The deal will put Tata in direct competition with Reliance’s JioMart, Amazon and Walmart-owned Flipkart, apart from Grofers.
Be noted that the online grocery segment is witnessing significant growth as consumers choose to shop from the safety of their homes amid the ongoing Covid-19 pandemic.
BigBasket has said that it is currently clocking 23-25% higher sales in April than the previous month. The company reported a 36% growth in revenue to Rs 3,818 crore for the year ended March 31, 2020.
Interesting positive trends
About 47 per cent of start-up founders have started experiencing growth during April 2021.
Almost the same number are expected to follow the same up-going curve in next few months.
Almost 88 per cent of early-stage ventures are looking to raise funds in the next 3-6 months.
It is revealed in a survey undertaken by the early-stage venture investor 100X VC.
Zomato has filed its draft red herring prospectus (DRHP) with the markets regulator Sebi recently, seeking to raise more than a billion dollars through a combination of fresh equity issue and sale of existing shares.