The acceleration in sales in the e-grocery segment due to the coronavirus was $3 billion by the end of 2020, with the change in lifestyles the online sales in the Indian online grocery market is estimated to grow at a compound annual growth rate (CAGR) of 37.1% from 2021 to 2028.
The deal between BigBasket and Tata Digital which is a subsidiary of the Tata group was approved by The Competition Commission of India (CCI). The deal which was in discussions for six months will finally come to an end. The Tata group will hold to 64.3% stakeholding capacity of the Indian online grocery giant Bigbasket. Even after the acquisition, the CEO of BigBasket Hari Menon will not be replaced. The e-retailer which has more than 12 million users is valued at more than $1.5 billion in the deal. The deal would have a primary cash infusion of around $250 million. Due to a primary and secondary sale mix, the investors of BigBasket – Alibaba and Abraaj group could exit. Additionally, there would be a public listing for BigBasket in the following two years.
According to the statistics, the e-grocery segment which makes a $300 billion sector has been booming due to the Covid-19 outbreak or for other reasons. amid the second wave of the virus spread BigBasket estimated 25% higher sales while one of the competitors – Grofers is planning for team expansion in estimation of above 150% increase in some product categories. However, it has only reached 1% of the Indian grocery market even with all the giants in the e-commerce sector like Amazon, Flipkart, BigBasket, and the small companies like Godrej Nature’s Basket, Grofers, etc.
The Tata group planned for the Super app which was a ground-breaking entry in the e-grocery segment. The company is a famous and reputed brand with multiple businesses that focus on different target groups. The company’s presence in retail, e-commerce, fashion, electronics, etc is significant. As BigBasket is a powerful and well-known brand in the e grocery business it will give Tata a great boost to enter into this segment where there is already a huge competition from Amazon, Reliance, and Flipkart.
BigBasket offers good quality and availability of the products as it maintains a streamlined supply chain.
With the technically strong e retail markets, the grocery space will see higher growth in business with simplified yet robust technical portals.