Tata Group includes all ecommerce ventures, including Big Basket, in its digital business: Report

According to the Economic Times, Tata Digital would become the only company for all of the Tata group's online retail initiatives, including Big Basket, Tata Neu, and Croma.

According to the latest regulatory filings, the international conglomerate also intends to transfer the holding company for Tata UniStore, which owns and operates the fashion and luxury-focused ecommerce site Tata Cliq, under Tata Digital.

According to the article, the move is intended to strengthen the group's footprint in ecommerce. Tata Digital stated in the documents that the permitted capital was also enhanced in light of its growth ambitions, debt repayment, and future investments.

According to documents with the Registrar of Companies (RoC), the group upped Tata Digital's authorised share capital by Rs 1,000 crore to Rs 21,000 crore last week and infused a new Rs 750 crore.

This is the second time this fiscal year that the group has increased Tata Digital's authorised share capital from Rs 15,000 crore to Rs 20,000 crore to allow for capital infusion, with the previous infusion totaling Rs 3462 crore. According to the ET report, Tata Digital boosted their investment from Rs 11,000 crore to Rs 15,000 crore in March.

Tata Industries and Trent were joint owners of Tata UniStore, with the former holding 96.78% and Trent owning the rest. According to documents, the group has valued Tata UniStore at 750 crore, and Tata Digital would give preference shares to Tata Industries and Trent on a private placement basis as payment for the acquisition of Tata UniStore.

According to the article, the Tata Group competes in the Indian ecommerce industry with Amazon, Walmart-owned Flipkart and Myntra, and Reliance Industries. Like its competitors, the firm is losing money in ecommerce. According to records, Tata UniStore's net loss more than doubled to Rs 750 crore in FY22, despite revenue increasing 137% to Rs 844 crore.