Tata Digital is all set to become the sole entity for all the online shopping projects of the Tata Group including the Tata Neu, Big Basket, Croma, etc. The information has been revealed in a report by Economic Times. Apart from that, the conglomerate is also tightening its belt to transfer the holding company for Tata UniStore, which owns and runs the fashion and luxury-focused e-commerce platform Tata Cliq, under Tata Digital. The same has not been verified by us so we will advise the users to take the information with a pinch of salt.
The latest step by Tata comes to solidify the presence of the group in the e-commerce section. In the filings, Tata Digital mentioned that the authorized capital was also increased considering its business plans, repayment of debts, and the investments that are supposed to be made at given intervals of time. In the last week, the Tata group increased the authorized share capital of Tata Digital by Rs 1,000 core to Rs 21,000 crore and it also infused a fresh Rs 750 crore according to the filings shared with the Registrar of Companies (RoC).
This is happening for the second time that Tata has expanded the authorized share capital of Tata Digital from Rs 15,000 crore to Rs 20,000 crore. The same has been done to create a way for capital infusion, the previous infusion for the same was Rs 3,462 crore. In March 2023, Tata Digital increased its capital from Rs 11,000 crore to Rs 15,000 crore as per an Economic Times report.
Talking about the Tata UniStore, it is owned by both Tata and Trent. Tata has a 96.78 percent share of the UniStore while the remaining shares are held be Trent. The group has valued Tata UniStore for Rs 750 crore and Tata Digital will offer preference shares to Tata Industries and Trent on a private placement basis as consideration for the acquisition of the Tata UniStore.
Reports suggest that the Tata Group is looking to give tough competition to Amazon, Myntra, Reliance industries, and Flipkart in the Indian e-commerce market. The Tata Group is no doubt making heavy investments similar to its rivals to make its presence felt. The filings of Tata UniStore showed that the net loss in Financial Year 2022 was more than doubled at Rs 750 crore and the revenues took a jump too as they shot up by 137% which is Rs 844 crore.
