Tata Nue’s Parents Tata Digital to raise INR 3,462 Cr from Tata Sons

TATANeu

Tata Digital, the parent company of Tata Neu Super App, is reportedly increasing its authorized share capital from INR 15,000 cr to INR 20,000 cr as it looks to raise fresh funding from Tata Sons.

Further, according to an ET report, Tata Digital has already received its board’s approval to raise INR 3,462 crore in two tranches from Tata Sons, taking the total issued share capital to INR 15,934 crore. Earlier, Tata Sons invested INR 5,882 cr in Tata Digital in April 2022. So far, Tata Sons has invested nearly INR 6,400 cr in the parent super app.

Since the authorized share capital was only INR 15,000cr, the tech conglomerate decided to raise the limit, allowing future investments up to INR 4,000cr.

According to its regulatory filings, Tata Digital is raising funds of funds to pay down its debt, inject working capital, make investments and more. The funds also come ahead of the debut of the Tata Neu as part of the festive sales. The stage is already set for competitors Amazon, Flipkart and Reliance Retail, where Tata Digital has already held a pre-celebration sale from September 2-4.

As the super app evolves, the Neu super app has also launched financial services and is likely to boost the funds’ segment. Tata Digital also recently invested $40 million in its pharmacy, 1mg, making it India’s 107th unicorn.

Recently, reports suggested that Tata Cliq, the e-commerce lifestyle of the salt and steel conglomerate, will also shift hands from parent company Tata Unistore to Tata Digital and launch offline stores. The infrastructure of such a store can also be the reason for the fundraising of a digital company.

Currently, Tata Neu is working on improving its technology even though its CTO Sauvik Banerjee is retiring. The company has received nearly 20,000 feedback points and is working on them to make the overall experience smooth and later also launch its payment feature – Tata Payments.

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