Tata Digital to get extra Rs 5,882 crore investment in a bid to compete with major e-tailers
Tata Digital, the owner of the recently launched ecommerce superapp Tata Neu has been making acquisitions in the consumer space over the past year, buying up buzzy startups like e-grocer BigBasket or e-pharmacy1mg.
This latest funding brings Tata Digital’s total investment to Rs 11.872 crore by 2021-22. It will help it build a strong base to compete with established ecommerce competitors Amazon and Walmart-owned Flipkart.
According to filings to the Registrar of Companies, Tata Digital’s board approved the allotment of 5.88 Billion fully paid up equity shares of Rs 10 each, aggregating into Rs 5,882 crore to Tata Sons. Tata Neu’s online presence on Thursday saw RoC filings. This indicates that Tata Digital is preparing to compete with established players such as Flipkart, Amazon, and JioMart.
According to filings, Tata Digital, also the holding entity for Croma’s electronics retail chain, received from Tata Sons Rs 5,990 crore in multiple tranches during the nine months ending December 2021-22.
ET received no response to ET’s emails until Friday press time.
According to filings, Tata Digital raised its authorized share capital from Rs 11,000 crore at Rs 15,000 crore to Rs 15,000 crore. This was in preparation for the current capital infusion.
Tata Digital stated in its filings that it had increased its authorized share capital to repay some of its debt and meet other corporate needs.
AltInfo founder Mohit Yadav said that Tatas’ huge infusion of Rs 5,882 Crore in one tranche represents almost half the capital infusion into the company since its inception. It sends a message to other wealthy players that Tatas are fighting the e-commerce war to victory, and that costs will not hinder them from achieving their goal.
Yadav said that the increase in authorized share capital indicates that future infusions will be possible.
The RoC filings show that Tata Digital raised Rs 400 crore from Tata Sons in FY21, and Rs 100 crore from Tata Sons in FY20.
According to filings, Tata UniStore Ltd, the owner of the Tata Cliq platform for ecommerce, raised Rs.102 crore in FY22 and Rs. 30 crore FY21. Rs. 311 crore was raised in FY20. Rs. 311 crore was raised in FY20. Rs. 311 crore was raised in FY20. Rs. 311 crore was collected in FY20. Rs. 311 crore was raised in FY20. Rs. 311 crore was raised in FY20. Rs. 292 crore in FY19.