Tata Digital To Raise INR 3,462 Cr From Tata Sons: Report

SUMMARY

Tata Digital is reportedly increasing its authorised share capital from INR 15,000 Cr to INR 20,000 Cr

Despite the INR 3,462 Cr infusion, the increase in authorised share capital is likely to leave way for future investments of up to INR 4,000 Cr

The funds will be used to repay debt, infuse working capital, make investments and more

Super app Tata Neu’s parent company Tata Digital is reportedly increasing its authorised share capital from INR 15,000 Cr to INR 20,000 Cr as it looks to raise fresh funds from Tata Sons.

Further, according to an ET report, 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.

Previously, Tata Sons invested INR 5,882 Cr into Tata Digital in April 2022. So far, Tata Sons has invested nearly INR 6,400 Cr into the super app parent.

Since the authorised share capital was only INR 15,000 Cr, the tech conglomerate decided to raise the limit, making headway for future investments of up to INR 4,000 Cr.

Inc42 couldn’t independently verify the development

According to its regulatory filings, Tata Digital is raising the funds capital to repay its debt, infuse working capital, make investments and more.

The funds also come ahead of Tata Neu’s debut within the festive season sales. The stage is already set for competitors Amazon, Flipkart and Reliance Retail, where Tata Digital had already held a pre-festive sale from September 2 to 4.

As the super app evolves, the super app Neu has also launched financial services and is likely to further the segment with the funds. Recently, Tata Digital also infused $40 Mn in its epharmacy, 1mg acquisition, making it India’s 107th unicorn.

More recently, reports have suggested that Tata Cliq, the salt to steel conglomerate’s lifestyle ecommerce brand will also shift hands from parent company Tata Unistore to Tata Digital and launch offline stores. The infrastructure-heaviness of such a store may also be a reason for the digital company’s fundraise.

Currently, Tata Neu is working on improving its technology despite its CTO Sauvik Banerjjee quitting. The company had received nearly 20K points of feedback and is working on them to make the overall experience smooth and later also launch its payments feature – Tata Payments.

Further, Tata Group is also looking to open Neu for non-Tata brands.