New Delhi: To acquire a major stake in the start-up, the Tata Group on Wednesday said it is going to infuse about USD 200-250 million in online grocery platform BigBasket. As per latest updated, the salt-to-software conglomerate is also in the final stages of acquiring over 50 per cent stake in online pharmacy start-up 1mg.Also Read - After Vodafone-Idea, Government To Get 9.5 Per Cent Stake In Tata Teleservices

According to reports, Tata Group is expected to spend about USD 1.2 billion, in a mix of primary and secondary sale of shares, for a 60 per cent stake in BigBasket. Also Read - Happy Birthday! Ratan Tata Turns 84. 5 Quotes By Philanthropist To Inspire You

After Tata Group planned to acquire a majority stake in BigBasket, two of the biggest investors in the online grocery startup may exit the deal. They are Chinese e-commerce giant Alibaba and equity firm Abraaj Group. Also Read - PF, Gratuity And VRS: Here's What in Store For Air India Employees as Maharaja Returns to Tata Sons

However, it must be noted here that both the brands collectively hold approximately 46 per cent stake in BigBasket. It may also provide partial exits to small investors.

Once the deal is finalised, Tata Group will make a formal announcement regarding the BigBasket venture as the agreement is expected to close over the next few days.

After the deal is signed, BigBasket’s value could increase to USD 1.6 billion. The reports further stated one part of the deal involves an initial public offering for BigBasket by 2022-23. The deal, therefore, seems to be beneficial for both the Tata Group and BigBasket.

For the Tata Group, the Bigbasket deal is important as it plans to expand its retail footprint in India and take on other giants like Reliance and Amazon. Moreover, BigBasket deal could help Tata Group in setting up its “Super App”, which will be a one-stop platform for all kinds of products and services offered by the group.