Tata Group has reportedly invested more than INR 5,000 Cr in the Tata Cliq parent in FY23
Between FY18 and FY21, the UniStore entity has raised INR 959 Cr, in equity, from the parent company
Tata Industries also backed Tata Cliq with INR 3,462 Cr investment in FY23, taking its total investments to INR 11,872 Cr into its step-down subsidiaries
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Tata Group has invested another INR 1,600 Cr capital into Tata Cliq parent Tata UniStore. According to regulatory filings, the Group has already invested more than INR 5,000 Cr in UniStore in FY23.
According to the filings, accessed by ET, the company board had approved the capital infusion on November 16, 2022, allotting equity shares on a rights basis to Tata Industries. However, the purpose of the fundraise has not been disclosed.
Besides, Tata UniStore has also raised INR 1,000 Cr through the unsecured, unlisted, redeemable, optionally convertible debenture route, on a rights basis from Tata Industries and Trent Ltd. The debt fund was used for capital expenditure, working capital requirement, operating expenditure and other general corporate purposes, the company stated.
Between FY18 and FY21, the UniStore entity has raised INR 959 Cr, in equity, from the parent company.
Currently, Tata UniStore runs the Tata Cliq business, which is jointly owned by Tata Industries and Tata Group’s lifestyle retail company Trent. According to more recent reports, Tata Cliq is looking to change hands from UniStore to the super app Neu and fall under the digital retail arm of the conglomerate. Its CEO Vikas Purohit, also recently quit the firm.
Tata Cliq, where electronics is the champion category, may also pivot its business to luxury or beauty as it is otherwise a conflict of interest for Tata Neu and Croma.
Previously, Tata Industries also invested INR 3,462 Cr in FY23 in Tata Digital, taking its total investments to INR 11,872 Cr into its step-down subsidiaries.
While these investments are a part of Tata’s idea of accelerating its ecommerce growth, experts are of the belief that the company is only burning cash. In FY22, Tata UniStore’s net losses more-than-doubled to INR 750 Cr on the back of INR 844 Cr revenue. Even Tata Neu, which debuted in April 2022, has reportedly failed to make a mark within India’s ecommerce.
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