Tata Sons is in the mood to take up the e-commerce business, and is set to compete with industry giants like Amazon and Flipkart. According to a report, the business group has invested Rs 5,882 crore in its flagship e-commerce firm Tata Digital. Tata Sons has made the highest ever fund allocation in a single tranche in a financial year to its e-commerce business, the report said.
The total investment in Tata Digital now stands at Rs 11,872 crore in 2021-22 with additional funding, helping it create enough strength to take on e-commerce rivals such as Amazon and Flipkart in India, The Economic Times reported. Referring to the filing said. As per the publication, in a filing to the Registrar of Companies (ROC), it is mentioned that the board of Tata Digital has approved the “allocation of 5.88 billion fully paid equity shares of Rs 10 each on rights basis”. Is. To Tata Sons, the holding arm of Tata Digital, on March 30 this year. The allotment resulted in a total investment of Rs 5,882 crore. The allotment was made on the day the company’s all-purpose app Tata Neo went. Live to compete with existing players like Flipkart, Amazon and others.
“Tata Digital, which is also the holding arm of the group’s electronics retail chain Croma, received Rs 5,990 crore from Tata Sons in the nine months till December 2021-22,” the report said, citing regulatory filings.
“On March 23, the filing revealed, Tata Digital increased its authorized share capital from Rs 11,000 crore to Rs 15,000 crore to set the stage for the current round of capital infusion. Tata Digital said in the filing that its authorized share capital was increased to repay part of its existing debt, to meet business activities and other corporate requirements,” the report further stated.
Experts say that the increase in authorized capital proves that Tatas are in a war to win and there are chances of more such investments in the near future. According to the RoC filing, Tata Digital raised Rs 400 crore in FY 2011 and Rs 100 crore from Tata Sons in FY 2010, the report said. On the other hand, Tata Unistore Limited, the owner of the Tata Click platform, earned Rs 102 crore in FY 2012, Rs 30 crore in FY 2011, Rs 311 crore in FY 2010, Rs 292 crore in FY 2019 and Rs 224 crore in FY 2018. Raised Rs.
The Tata group recently made public its intention to make it big in e-commerce with the launch of its super app, Tata New. The application gives users access to multiple platforms such as Air Asia, BigBasket, Croma, IHCL, Cumin, Starbucks, Tata 1mg, Tata Cliq, Tata Play, and Westside and other platforms owned by the company.
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