Tata Group infuses fresh capital in e-commerce business Tata Cliq
The Tata Group has made a fresh capital infusion of Rs 231 crore ($32.5 million) into its e-commerce business, Tata Cliq. The company is looking to expand its e-commerce business and expected to infuse more funds in the coming months.
Tata Unistore, which owns and runs Tata Cliq, has increased authorised share capital of the venture from Rs 1,150 crore to Rs 1,500 crore, according to its latest regulatory filings.
Tata Cliq will be using the funds to expand its customer base, brand portfolio, staff retention, and technology.
“Considering the funding requirements of the company to enable it to run its business effectively are intended to be mobilised through the issue of the equity shares of the company, the board of directors has recommended that the authorised share capital of the company to be increased from Rs 1,150 crore to Rs 1,500 crore,” Tata Unistore said in its filings with the Registrars of Companies.
The Tata Group had entered the e-commerce space three years back and since then has been continuously investing to expand its e-commerce site Tata Cliq.
Recording a profit its e-commerce business has been a struggle for Tata, as losses continue to mount on a year-on-year basis due to operational expenditure and marketing spends.
Tata Unistore’s net losses had jumped 18 percent to Rs 247 crore in 2018-19 as against a net loss of Rs 208 crore it had reported in the fiscal year 2018.
The company’s sales, however, have been growing and had more than doubled to Rs 111 crore for the fiscal year 2018-19 as compared to Rs 42 crore in the fiscal year 2018.
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