Tata Brings all Ecommerce Ventures, including Big Basket, under Digital Biz: Report

According to the Economic Times, Tata Digital will soon become the premier entity for all e-commerce shopping endeavors undertaken by the Tata group – including Big Basket, Tata Neu and Croma.

In an effort to further consolidate their digital presence, the multinational conglomerate has devised a plan to bring Tata UniStore and its fashion-based ecommerce platform Tata Cliq under the umbrella of Tata Digital. This shift is reflective in recent regulatory filings.

This move was made to reinforce the presence of the group in ecommerce, as per reports. Tata Digital specified that an increase in authorized capital had been arranged with regards to their business plans and investments they intend to make on a periodic basis, along with debt repayment purposes.

Last week, Tata Digital saw its authorized share capital rise by Rs 1,000 crore to a total of Rs 21,000 crore as well as an additional infusion of Rs 750 crore following filings made with the Registrar of Companies (RoC), according to reports.

For a second time this financial year, the group has decided to raise Tata Digital’s authorized share capital from Rs 15,000 crore up to Rs 20,000 crore in order to allow for more capital infusion. The last influx was of Rs 3462 crore and before that back in March it had been increased from Rs 11,000 crore all the way up to an impressive sum of Rs 15,000 according to ET reports.

Tata Industries and Trent have collaborated to form Tata UniStore, where the former owns a remarkable 96.78% of the shares while the rest is held by Trent. Apparently, this alliance has been estimated at ₹750 crore – an offer that Tata Digital plans to present in terms of preference stocks privately issued for acquiring Tata UniStore as per official documentation.

According to the report, the Tata Group is engaged in a heated competition with ecommerce heavyweights such as Amazon, Walmart-owned Flipkart and Myntra, and Reliance Industries. Much like its competitors, the group has not been shy about burning money for strategic investments; In FY22 alone, Tata UniStore’s net loss more than doubled to Rs 750 crore while revenue surged 137% to Rs 844 crore according to filings.

It remains to be seen if this move will help the group rise up the ranks of India’s ecommerce market. However, it goes without saying that such a bold move will help strengthen Tata’s digital presence. We’ll have to wait and see how the story plays out. Stay tuned for more updates!

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