Tata Digital's shopping spree continues as it builds its ‘super app’ platform. After acquiring e-grocer BigBasket, investing in fitness platform Curefit, and in the process of closing a deal with e-pharmacy 1MG, the company is now eyeing the Google-backed hyper-local delivery platform Dunzo, which has become a popular concierge service in many metros.
Sources say two rounds of talks have taken place between the Tatas and Dunzo for investment, though the talks are still exploratory in nature.
“Dunzo is growing at an unprecedented rate. In fact, we have doubled our business in the last 75 days and continue to grow 50 percent month-on-month. While we are currently in advanced discussions with multiple investors on raising additional capital to the tune of $150-200 million, a buyout or sale of controlling interest is definitely not up for discussion,” a company spokesperson told CNBC-TV18. Tata Digital did not offer comments.
Tata Digital was launched in 2019, and while the company is yet to launch its '
super app' platform, it is aggressively chasing M&A opportunities.
As per sources, Tata Group shelled out over a billion dollars to acquire a 64.3 percent stake in BigBasket, valuing the Bengaluru-based startup at $1.8 billion. Such a large cheque by a traditional business house may seem odd to some, but the future of e-grocery in India is only set to explode.
Along with the deal, the Tata Group also found a seasoned tech leader to guide the company. CureFit Founder and CEO
Mukesh Bansal is set to join Tata Digital in an executive role as president of the company, while also continuing in his leadership role at CureFit.
The Tata Group is bullish on the overall fitness sector in the country, stating that the Indian fitness and wellness market is growing at ~20 percent per annum and is expected to reach ~$12 billion by 2025.
Dunzo, with investors like Blume Ventures and Lightbox, is seeing stiff competition in the hyperlocal space from the likes of Flipkart and Swiggy after the two turned to the hyperlocal delivery space after the coronavirus outbreak.
First Published: Jun 9, 2021 1:37 PM IST