Tata Group is planning to acquire a stake in Bigbasket and IndiaMart to compete with Amazon and Reliance. With e-commerce business thriving in the country, it is obvious to see big conglomerates like Tata Group to step-up their game in the same. The company has its hands in almost everything and now are also planning to ramp up their online presence.
Plans to acquire a stake in IndiaMart and Bigbasket
In 2020, IndiaMarts share has surged by 142% and the company has an estimated value of $2 billion. According to confidential information from some insiders, the Tata group is planning to acquire a stake in IndiaMart and BigBasket. This will help them with the likes of Reliance that has recently acquired Future Retail.
Presently reports suggest that the plans to acquire stake by Tata Group is not fixed. The initial discussions with IndiaMart have been held, but no conclusion has been reached yet. We are not entirely sure of what is cooking here because the founder of Bigbasket and a representative from Tata did not comment.
A comment from the founder and chief executive officer from IndiaMart Dinesh Agarwal said, “Any talk of IndiaMart being in discussions with Tata Group for investment or acquisition is completely baseless”. It will be interesting to see if Tata actually acquires a stake in IndiaMart and narrows down its competition with Reliance and Amazon.
Tata’s plans
Tata has been planning to compete with e-commerce sites. And at the same time, Tata is also asking investors to acquire a stake in their digital platform they are planning to build. Their online model is very fragmented at present, and the company is slowly in the process of organising it.
The company has many services and stores all around India. These include Tanishq jewellery stores, Titan watch showrooms, Star Bazaar supermarkets, chain of Taj hotels and Starbucks Corp. in India. Tata also plans to build an all-in-one e-commerce app that will have all these stores at one place. And users can purchase anything from the app online.
If Tata is planning to and actually acquires a stake in IndiaMart, it will prove to be very beneficial for the company. This is because IndiaMart control over 60% of the B2B classified market and acts as a platform for many small and medium-sized businesses.
I am very optimistic about Tata’s plans to compete in the e-commerce market. What are your thoughts on Tata’s plans to acquire a stake in IndiaMart and Bigbasket? Do let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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