The Tata Group is planning to invest an additional Rs. 3,500 crore equity capital in its e-commerce venture – Tata Cliq, which is owned by Tata UniStore – as the platform sees strong growth. The Group has increased the authorised share capital of the company from Rs 1,500 crore to Rs 5,000 crore. In its latest regulatory filing to the Registrar of Companies, Tata UniStore said that the board of directors has recommended an increase in authorised share capital of the company through the issue of equity shares, considering the funding requirements to enable it to run its business effectively. The firm has also increased its borrowing limit to Rs 490 crore.
As per industry experts, this development indicated that Tatas will be opening up their war chest in the future and intend to be in the e-commerce business for the long haul. The latest filings show the company’s increase in revenues by 144% to Rs. 266.03 crore, in 2019-20 while its net loss surged by 9.7% to Rs 270.64 crore.