India: Tata Group in talks to invest for a minority stake in BigBasket

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The salt to technology conglomerate Tata Group has joined the conversations to pick up a minority stake in online grocer BigBasket, which has been looking to raise $200 million in growth capital, two people aware of the development told Mint.

“Tata group, Temasek and Generation Investment Management are in advanced talks with BigBasket. The deal size is around $200 million, which will be entirely primary capital to boost the company’s growth,” said one of the people cited above, requesting anonymity.

BigBasket has seen strong tailwinds due to the covid-19 pandemic and the lockdowns, as more customers are now preferring to shop online for groceries, the person added.

Spokespersons for Tata, Temasek, Generation Investment Management and BigBasket could not be immediately reached for a comment.

Tata’s interest in BigBasket comes at a time when the group is looking to enter the online commerce market in a big way.

In August, The Financial Times reported that the Tata Group is preparing a new platform, aimed for a December or January launch, that will put together the company’s varied offerings together onto a single platform.

“It will be a super app, a lot of apps in apps and so on . . . We have a very big opportunity,” Tata Sons chairman Natarajan Chandrasekaran told Financial Times. The app would eventually encompass services from food and grocery ordering to fashion, lifestyle, electronics, insurance, financial services, education, healthcare and bill payments, Chandrasekaran said.

Mint reported on 25 May that BigBasket has “appointed Goldman Sachs and Morgan Stanley to help raise funds and that the online grocer is eyeing a valuation of $2 billion in its latest round.

Last year, BigBasket raised $150 million at a valuation of $1.2 billion in a round that saw participation from South Korea’s Mirae Asset-Naver Asia Growth Fund, UK’s CDC Group, and existing investor Alibaba.

This article was first published on livemint.com

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.