Tata Group infuses INR 1,600 Cr In Cliq-Parent UniStore
- ByStartupStory | December 20, 2022
In a report, Tata Group has reportedly invested Rs 1,600 crore capital in the FY23 into omnicommerce, fashion, and luxury-focused e-commerce entity Tata UniStore, which owns and operates the Tata Cliq platform, as per the latest regulatory filings. With this, the group has already infused over Rs 5,000 crore into the e-commerce business this fiscal, continuing the high pace of investment that had started last year.
The company issued equity shares allotted on a rights basis to raise the cash to its parent, Tata Industries Ltd. The company did not attribute any reason for raising the capital in the filings. However, this is one of the largest fund infusions into Tata Cliq in at least the last five years, the filings show. In the filings, Tata UniStore said the fund was raised for capital expenditure, working capital requirement, operating expenditure, and other general corporate purposes of the e-commerce business of the company.
“Tata’s continuous infusion of capital into the digital segment shows that its aim is to dominate the segment by leveraging its brand reputation and omnichannel approach. One advantage Tatas have over its peers is that the group already owns well-established products that enable the group as a whole to have better control over margins, logistics, and synergy. What remains to be seen is how all this translates into execution.” said Mohit Yadav, Founder of AltInfo.
While this is the first time this fiscal Tata Cliq has received equity infusion, the group’s second e-commerce-focused entity – Tata Digital – has already seen an infusion of Rs 3462 crore this year and has expanded the company’s authorized share capital by Rs 5,000 crore indicating more infusion is lined up.
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