Tata Digital will now be the sole entity responsible for all of the Tata Group’s online shopping ventures, including Tata Neu, BigBasket, and Croma.
The move comes shortly after Tata Digital increased its authorised share capital from INR 15,000 Cr to INR 20,000 Cr as it looks to raise fresh funds from Tata Sons
The move also follows Tata Digital's announcing its financials where its consolidated net loss widened 5.6X to INR 3,052 Cr in FY22 from INR 536.7 Cr in FY21
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Tata Digital, the ecommerce and retail arm of Tata Group has consolidated all its ecommerce ventures by transferring ownership of Tata UniStore. UniStore operates the fashion and luxury ecommerce platform Tata Cliq, which will now be a part of Tata Digital.
Under ‘Project Tulip’, the Tata Group had reportedly valued Tata UniStore at INR 750 Cr ($100 Mn), offering preference shares to Tata Industries and Trent (joint owners of Tata UniStore) to acquire the UniStore biz.
According to regulatory filings, Tata Digital will now be the sole entity responsible for all of the Tata Group’s online shopping ventures, including Tata Neu, BigBasket, and Croma.
The development was first reported by ET.
With the present change in parent companies, Tata Cliq may also pivot its business to luxury or beauty from electronics, to avoid any conflict of interest with Tata Neu and Croma.
The move comes shortly after Tata Digital increased its authorised share capital from INR 15,000 Cr to INR 20,000 Cr as it looks to raise fresh funds from Tata Sons. The Tata Group also recently invested another INR 1,600 Cr capital into Tata Cliq parent Tata UniStore.
Reportedly, Tata Digital has already received the approval of its board to raise INR 3,462 Cr in two tranches from Tata Sons, taking the total issued share capital to INR 15,934 Cr. With the fresh funds, it plans to repay its debt, infuse working capital, make investments and more.
The move also follows Tata Digital’s announcing its financials where its consolidated net loss widened 5.6X to INR 3,052 Cr in FY22 from INR 536.7 Cr in FY21. Its total income also jumped 3X to INR 16,201 Cr during the year from INR 5,463.3 Cr in FY21.
Currently, Tata Digital is the parent company of acquired companies including Grameen eStore, Urja, AccessBell, 1mg, BigBasket and CureFit. It has invested over $500 Mn and even changed its leadership with an aim to build a startup-like ecosystem — a fast-moving culture with young talent.
Tata Neu, the digital arm’s super app, is also a single portal fitting all of Tata’s existing B2C businesses, including education, fashion and lifestyle, wealth management, ecommerce, DTH, retail payments, grocery, electronics and consumer durables, among others.
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