Tata Sons Pushes BigBasket for $1 Billion Fundraise Amid Quick Commerce Boom

Tata Sons is reportedly dissatisfied with BigBasket’s sluggish performance, especially as quick commerce rivals like Blinkit, Zepto, and Swiggy Instamart continue to expand rapidly. According to reports, Tata Sons sees this as a strategic mistake that has caused BigBasket to lag behind its competitors.

Push for External Investment

BigBasket, which is owned by Tata Digital (a subsidiary of Tata Sons), has been advised to seek external funding of up to $1 billion to regain market position. Bankers have recently held meetings to discuss potential investors and funding strategies, the report mentioned.

However, Tata Sons is reportedly not keen on leading this funding round. Instead, the group wants to bring in a large financial investor independently at the BigBasket level rather than through Tata Neu. Existing investors, including Tata Sons, may contribute additional capital after securing an external backer.

Possible IPO for BigBasket

According to sources, this funding round could eventually lead to BigBasket launching its own IPO in the future, allowing it to operate as an independent entity.

Market Competition and Challenges

The quick commerce sector has been rapidly growing, with companies gaining market share despite high cash burn rates. As per reports highlighted Blinkit (owned by Zomato) and Zepto hold the largest share in India’s rapid delivery market, while Swiggy Instamart ranks third.

• Blinkit holds 41% market share
• Swiggy Instamart holds 23%

BigBasket’s Future Plans

Despite the competition, BigBasket is planning to enter the quick commerce space. Last year, CEO and co-founder Hari Menon announced that the company would launch its own rapid food delivery service in 2025. This will position it against Swiggy’s Bolt, Zepto Café, and Blinkit’s Bistro.

BigBasket also aims to expand its product range to over 30,000 items, roll out pharma deliveries via Tata 1mg, and enhance services in Tier 1 cities.

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