Tata Group is set to acquire around a 60 per cent stake in leading Indian online grocer BigBasket, purchasing Alibaba’s stake in the company.
According to a report from Economic Times, the Indian multinational conglomerate and BigBasket are in talks over a deal worth nearly US$2bn.
The transaction of primary and secondary shares would provide a complete exit for two of the platform’s biggest investors Alibaba, which holds nearly a 30 per cent stake and private equity firm Abraaj Group, which owns about 18 per cent.
The report said the groups were in advanced talks and were waiting on regulatory clearance before a formal announcement. Once made, Tata plans to take BigBasket public by 2022 as part of the deal. Alibaba's exit would follow recent moves by the Indian goverment to discourage foreign investment.
The acquisition of BigBasket is set to boost Tata’s plan to develop a ‘super app’ which gives consumers a single point of access for a range of online shopping services from groceries to electronics.