To increase penetration in the e-commerce market, the Tata group may acquire Indian online retailer IndiaMart. A source privy to the matter said that the Tata group has approached IndiaMart Intermesh Ltd to buy a major stake. Negotiations are still at an early stage.
IndiaMart is a business-to-business marketplace. IndiaMart shares have risen 142 per cent this year, taking its market value to nearly $ 2 billion (about Rs 14,669 crore). According to media reports, Tata Group also intends to invest heavily in Supermarket Grocery Supplies Private (popularly known as BigBasket).
IndiaMart rejects news of investment talks
According to a Bloomberg report, IndiaMart founder and CEO Dinesh Aggarwal, however, said that any news that IndiaMart and the Tata group were negotiating for investment or acquisition are completely false. According to IndiaMart’s website, it holds 60 percent of the Indian online B2B classifieds market. The company was established in 1999 and currently has 3,150 employees working in its 84 offices across the country.
There is increasing competition in the Indian online market
Competition is increasing in the Indian online market. So far, the Indian online market is dominated by domestic units of Amazon.com and Walmart Inc. His dominance has been challenged by billionaire Mukesh Ambani’s Geomart. Now Tata Group also wants to increase its presence in this market through an acquisition.
A knowledgeable source said last month that Tata is working on a two-point policy to strengthen its online model. On one hand, it wants to acquire another marketplace. On the other hand, it is also looking for investors who can buy a stake in its digital platform.