Tata Sons ventures into e-commerce sector and invests Rs 5,882 Crore in Tata Digital
Mumbai: Tata Group is poised to take on established giants such as Amazon and Flipkart in the e-commerce space. In this regard, the business conglomerate has invested an amount of Rs 5,882 crore in its flagship e-commerce platform Tata Digital. According to a report, this is the highest fund allocation ever made by Tata Sons in a single tranche in its e-commerce business in a single financial year.Also Read – Tata Digital Encourages Senior Executives with Long-Term Incentives and Employee Stock Ownership Plan: Report
Citing Tata Group regulatory documents, The Economic Times reported that the additional funding brings the overall investment in Tata Digital in 2021-22 to Rs 11,872 crore. Also read – EXPLAINED: What is an open network for digital commerce, how will it work and what awaits buyers, sellers
According to the publication, the company was mentioned in documents filed with the Registrar of Companies (RoC) that Tata Digital winked at “the allotment of 5.88 billion fully paid shares of Rs 10 each on a rights basis” to Tata Sons, the holding entity of Tata Digital, on March 30 this year. Also Read – Parliamentary panel to summon Google, Twitter and representatives of other big tech companies to discuss their conduct
Notably, the award was made on the day Tata Neu, the company’s all-purpose app, went live to compete with existing players like Flipkart, Amazon and other companies.
“Tata Digital, which is also the holding entity of Croma Group’s electronics retail chain, had received Rs 5,990 crore from Tata Sons in the nine months to December 2021-22 in several tranches” , says the report citing regulatory filings.
The report further states that on March 23, Tata Digital increased its authorized share capital to Rs 15,000 crore from Rs 11,000 crore to set the stage for the current round of capital injection.
Additionally, Tata Digital said in filings that its authorized share capital was increased to repay part of its existing debt, meet business operations and other corporate requirements.
Recently, the Tata Group went public with its plans to make a name for itself in e-commerce with the launch of the super app Tata Neu. The super app allows users to access a number of platforms like Air Asia, BigBasket, Croma, IHCL, Qmin, Starbucks, Tata 1Mg, Tata CLiQ, Tata Play and Westside and other company-owned platforms.