Tata Group is preparing itself to take on established giants such as Amazon and Flipkart in the Ecommerce space.
Tata Sons has invested Rs 5,882 crore in its ecommerce company Tata Digital. This is the most the Tatas have invested in ecommerce in any single fiscal year.
The additional funding takes overall investment into Tata Digital in 2021-22 to Rs 11,872 crore, reported The Economic Times, citing regulatory filings of Tata Group.
According to the publication, in filings to the Registrar of Companies (RoC), it is mentioned that the board of Tata Digital on March 30 approved the allotment of 5.88 billion fully paid-up equity shares of Rs 10 each on a rights basis, aggregating to Rs 5,882 crore, to Tata Sons, the holding entity of Tata Digital.
Tata Digital, which is also the holding company for the group's electronics retail chain Croma, got Rs 5,990 crore in numerous tranches from Tata Sons in the nine months leading up to December 2021-22, according to the report.
As Tata Group attempts to take on existing players amid the rapid growth in the consumer digital economy space, it launched on April 7 its much-anticipated super app Tata Neu that allow users to access a range of services from the company-owned brands including Air Asia, BigBasket, Croma, IHCL, Qmin, Starbucks, Tata 1Mg, Tata CLiQ, Tata Play, and Westside.