Business conglomerate Tata Group is reportedly acquiring Gurugram-based GrocerMax to enter the online grocery space. The news comes at a time when Amazon India is in talks to acquire BigBasket to strengthen its online grocery business.
As part of the deal, Tata Group will acquire the management team and technology infrastructure of GrocerMax. This would be used to set up an online platform for Trent Hypermarket.
It is also reported that Tata Group will shut down GrocerMax’s Gurugram business, since it doesn’t have any presence in North India.
Trent Hypermarket is a joint venture between Tata Group and UK retailer Tesco. Tata Group and Tesco run three formats under the Star banner which include Dailies, Market, and Hyper.
Just last week, Trent Hypermarket launched its first hypermarket store, Star Hyper Hyderabad and disclosed its plans to expand the network of stores across formats from 42 now to 200 over next 2-3 years.
The company has set up its chain across Mumbai, Pune, Bengaluru, and Hyderabad and is focussed on local sourcing for its vegetables and fruits by engaging with more than 150 farmers.
Gaurav Juneja and K Radhakrishnan launched GrocerMax in 2015. K Radhakrishnan was previously CEO of the value retail format of Reliance Retail Ltd. while Gaurav Juneja was India Executive Director of French investment bank Bryan, Garnier & Co.
Radhakrishnan spent eight years at FoodWorld where he worked in both operations and merchandising units. He was also hired by Future Group’s Kishore Biyani as CEO of Future Fresh Foods.
GrocerMax is a hybrid platform for the grocery that claims to store only 10 per cent inventory, and sources the rest from supermarkets and provisional stores in real time.