Source: Flickr User Karoly Lorentey

It’s long been rumored that Tata is stepping up to the e-commerce challenge and building a super app for every offering that it provides. This is being seen as an attempt to compete with players like Amazon and Flipkart, along with long time rival Reliance, which recently launched a slew of new offerings, including JioMart. However, in this battle, the company needs some assistance, which is why it sought to acquire a majority stake in e-grocer BigBasket.

Today, CCI has approved the acquisition, as a part of which, Tata will acquire a majority 64.3% stake in BigBasket. This is being done through a combination of primary and secondary acquisitions.

Moreover, Supermarket Grocery Supplies Private Ltd (SGS) will take full control over Innovative Retail Concepts (IRC)-BigBasket’s parent company.

Tata is betting big on BigBasket’s potential, as it looks to enter a market that isn’t really its strong suite. However, the company is looking to expand its horizon and enter new verticals, especially after the success of Reliance Jio, which has grown on to become one of India’s biggest companies.

The Mukesh Ambani led platform has launched offerings not just in the tech space, but also in the e-commerce space, with JioMart.

Witnessing this success, Tata decided to build a ‘super-app’, something that attracted the attention of multiple conglomerates around the world. Reports claiming large investments have been surfacing for quite some time now, with one suggesting that even Walmart may be interested, and looking to spend $20-$25 billion in the project.

The news that a BigBasket acquisition may surface was first heard in October last year, and the company applied for the CCI nod in March this year.

With the blessings of the Competition Commission of India, Tata will finally complete its acquisition of BigBasket. However, we expect the company to undergo some more deals like this to complete its portfolio for the super app.