New Delhi: BigBasket on Wednesday refused to comment on reports that Tata Group is acquiring a majority stake in the grocery delivery platform.
TechCrunch earlier reported, citing sources, that Tata Group is buying over 60 per cent stake in BigBasket "in a deal that values the grocery platform between $1.8 billion-$2 billion".
"BigBasket has raised more than $750 million prior to the deal with Tata," the report mentioned.
When contacted, BigBasket said it does not have an official statement to share on the report.
Chinese internet giant Alibaba has about 30 per cent stake in BigBasket.
According to reports, Tata Group is expanding its operations in the consumer business as Reliance firms up its own plans with JioMart amid the booming e-grocery market in the country.
"Tata group has a significant presence in the Indian retail market across the categories, and given an online presence is now necessitated, the potential deal will ensure faster entry into the eGrocery segment," Rohan Agarwal, Director at consulting firm RedSeer, said in a statement.
"For BigBasket, the deal helps in getting the needed funds and support for the next wave of growth."
According to RedSeer, grocery is the largest contributor to the retail basket of Indian consumers, and the online penetration has been quite limited compared to other categories.
With the Covid lockdown in 2020 and the associated tailwinds for e-grocery, the GMV (Gross merchandise value) grew to $3.3 billion.
The consumer base got democratised, all categories including fresh fruits and vegetables were purchased, and the brands started focusing on the online channel.
A joint report by RedSeer and BigBasket (Brand Intelligence) in September last year said that online grocery is going to be the next battleground for growth, expanding to over $18 billion by 2024.
"The industry has seen more than 70 per cent ARR (annual recurring revenue) jumps in the last quarter across categories. This brings the opportunity to serve a larger set of customers, and some challenges with it," Hari Menon, co-founder and CEO of BigBasket, had said..
As the e-commerce battle intensifies in India, the next big thing is the delivery of groceries online and the market size is estimated to grow eight times in the next five years in the country.
The eGrocery market has grown 60 per cent from the calendar year 2020 and is expected to grow 41-49 per cent by the first half of CY21, according to the latest data provided by RedSeer.
India is witnessing a surge in demand for online grocery.
The latest Reliance takeover of Future Group's retail business is a major consolidation of organised grocery retail.
In terms of grocery retail, the revenue of Reliance Retail in FY20 was Rs 346 billion and that of Future Retail's annualised revenue for FY20 was Rs 100 billion.