The stake acquisition bid comes at a time when the race for Indian online grocery shoppers is heating up. It also comes close on the heels of JioMart, the e-commerce venture of Reliance’s retail arm, which offers free express grocery delivery from neighbourhood mom-and-pop stores. Jiomart is all set to pose a formidable challenge to local rivals, which are also betting big on groceries for their growth.
Meanwhile, Softbank-backed e-grocery firm Grofers is expecting its gross merchandise value (GMV) to grow four times to around Rs 30,000 crore by 2022 and focusing on private label products to drive overall sales growth, a top company official has said.
Tata Group is now negotiating how much stake it would purchase in Innovative Retail Concepts Pvt., popularly known by the brand name, BigBasket.com. According to Livemint, Tata may buy 50-60 percent stake from existing investors, including Chinese giant Alibaba and a few other investors.
Online grocery has emerged as the most lucrative retail vertical to be in during the pandemic and keeping this in mind, the Mumbai-based Tata Group – with a combined revenue of about $113 billion and marquee brands such as Jaguar Land Rover and tea maker Tetley – has been scouting for local e-commerce assets.