The coffee-to-cars conglomerate could be eyeing a 20% stake and two board seats in the potential deal, the FT report further stated.
Backed by Alibaba, BigBasket gained traction on the back of the ongoing Covid-19 pandemic as consumers purchase groceries and everyday essentials online.
The online grocery retailer has been in discussions to rope in new investors like Singapore government’s Temasek, US-based Generation Partners, Fidelity and Tybourne Capital, for a $350-400 million financing round, which will likely boost its valuation go up about 33% to around $2 billion.
A tie-up with Big Basket would help Tata to bolster its digital presence and catch up with rivals like Amazon and Mukesh Ambani’s fast-growing retail empire.
In August, Reliance acquired Kishore Biyani-helmed retail and wholesale business Future Group, whose brands and supply chains will help support JioMart, Reliance’s ecommerce platform. With access to over 1,800 stores spread across over 420 cities, the deal propelled Reliance Retail to a position to control of over Rs 2 lakh crore of the country’s retail turnover, comprising almost one-third of India’s organised retail sector.
Like with Jio, Reliance Retail has been bolstered by a string of investments of over $5 billion from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG, and ADIA.
The Tata Group, too, has been looking to ramp up its online presence. The 152-year-old Group has been in talks with Walmart for a $25 billion investment in a “super-app,” an online platform combining fashion, lifestyle and electronics, food and grocery, insurance and financial services, as well as digital content and education, Mint had reported last month.
As companies from Reliance to Amazon bet their top dollar, online grocery is set to become the next battleground for growth, expanding to over $18 billion by 2024.
Driven by the pandemic, eGrocery has been on a surge – clocking 1.7 times in gross merchandise value in June this year as compared to January, according to a joint report by consultancy group RedSeer and BigBasket (Brand Intelligence).