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Big blow to Chinese firm Alibaba as Tata Group plans to acquire 68% stake in BigBasket for Rs 9,500 crore

The deal is significant as it will allow a host of investors of BigBasket, including Alibaba to exit from the BigBasket.

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In yet another blow to China, the Tata Group is plannuing to acquire 68 per cent stake in online grocery platform BigBasket. It is learnt that Tata Group will spend around Rs 9,500 crore as the company plans to expand its footprints in the rapidly growing e-commerce space in India.

Sources said that the Tata group wanted to gain majority control in the Bengaluru-based startup and it has inked the deal to achieve its goal. The deal is significant as it will allow a host of investors of BigBasket, including Chinese billionaire Jack Ma-controlled Alibaba to exit from the BigBasket. Currently, Jack Ma-controlled Alibaba owns a 27.58 per cent stake in the company.

It is to be noted that Tata group, BigBasket and Alibaba are yet to comment on the matter.

The acquisition move by Tata Group puts BigBasket's enterprise value at over Rs 13,500 crore.

The deal is crucial for Tata Group as it will help them acquire a big user base which will open the doors for the salt-to-software conglomerate to cross-sell Tata products. BigBasket's acquisition can also help Tata Group realise its digital dream.

Tata Group's decision to acquire BigBasket comes at a time when online shopping is doing superb business in India after the COVID-19 pandemic.

It may be recalled that in March 2019, BigBasket had raised USD 150 million from Mirae, Alibaba and CDC Group.

BigBasket was founded in 2011 and it operates in 25 Indian cities. BigBasket competes with SoftBank-backed Grofers as well as Amazon India and Flipkart.

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