Tata Digital &Just Dial Teams Up For an eCommerce Play

An exploratory talk was held by Tata Digital, the digital arm of the salt-to-software services corporation with Just Dial an online search engine for local businesses, to strike a tactical alliance or pick up stake, as part of the Mumbai-based group’s push to enter the e-commerce space.

“Both sides have met for discussions, but it is too early to say anything has been finalised. A lot also depends on how things evolve between the two parties,” states a senior Tata official.

Tata Sons’ mergers and acquisitions team has been generating a list of possible corporations that they can close to deliver Tata Digital that big scale up and reach that have needed in the online consumer space.

With multiple partners as it hurries to finalise its ‘Super App’ that combines many services Tata Digital has held talks about products under a single umbrella, according to the people cited above.

Just Dial was launched as a phone-based service in 1996 by listing local services on its podium. VSS Mani, founder and managing director at Just Dial was among the first set of Indian entrepreneurs who tapped the online market. The company went public in 2013 and has a market capital of Rs.5,419.98 crore. Since going public, it has fought to take on tech heavyweights such as Google and Facebook.

By producing verticals for several services such as grocery, pharmacy, dairy, lifestyle, education, medical consultation, beauty, logistics, consumer finance, insurance and payment options, Tata Digital empowered itself in the industry margins across India.

A closing a deal is coming for Tata Digital to acquire a majority stake in BigBasket. The transaction is in anticipation of regulatory clearance from the antitrust regulator Competition Commission of India.