Tata Group is all set to make a foray into the online grocery business with the acquisition of the management team and technology infrastructure of Gurgaon-based GrocerMax, according to a report in The Economic Times.
The new team aims to take on rivals like Amazon and Bigbasket with a new online platform for Trent Hypermarket which is a joint venture between Tata and British retailer Tesco. Reportedly, GrocerMax will shut down its business in Gurgaon because the Tata’s grocery business is not present in North India.
The Tata group runs three formats under the Star banner—Dailies, Market and Hyper and has around 42 stores. While Tesco has nearly 6,800 stores globally, its presence in India is still very low. And given the nascent but still growing online grocery business, there is a huge opportunity to be tapped in the segment.
GrocerMax was founded two years ago by Gaurav Juneja and K Radhakrishnan. It is a hybrid platform for the grocery that keeps only 10 percent inventory, sourcing the rest from supermarkets and provisional stores in real-time.
The financial terms of the deal haven't been disclosed and both the parties are yet to make any official comment.