Tata UniStore, the fashion and luxury-focused e-commerce entity that runs Tata Cliq platform, has raised Rs 1,600 crore from its parent company Tata Group.
According to Tata UniStore’s filings with the Registrar of Companies (RoC), the Rs 1,600 capital infusion was approved by the company’s board on November 16.
Continuing the high pace of investment, Tata Group has already infused over Rs 5,000 crore into its e-commerce business this fiscal.
Tata UniStore issued equity shares allotted on a rights basis to raise the cash to its parent, Tata Industries Ltd. This is one of the largest fund infusions into Tata Cliq in at least the last five years, the filings revealed.
Besides, Tata UniStore has also secured Rs 1,000 crore through an unsecured, unlisted, redeemable optionally convertible debenture route on a rights basis to existing shareholders of the company Tata Industries and Trent Ltd.
The filings said Tata UniStore had raised Rs 102 crore in FY22, Rs 30 crore in FY21, Rs 311 crore in FY20, Rs 292 crore in FY19, and Rs 224 crore in FY18.
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 Digital, Tata’s second e-commerce-focused enity, has already seen an infusion of Rs 3,462 crore in FY2022. It has expanded the company’s authorised share capital by Rs 5,000 crore indicating more fund raisings are lined up.
In 2021-22, Tatas infused Rs 11,872 crore into the company, as per filings. Tata Digital runs the Tata Neu super app and is the holding company for e-grocer Big Basket and electronics retail chain and e-commerce seller Croma.
Tata UniStore’s net losses more-than-doubled to Rs 750 crore in FY2022, while revenues jumped by 137 per cent to Rs 844 crore, the filings show.
Tata Cliq, which started operations in 2016, recently exited the electronics business to prevent clash with Tata Neu that began its operations in April 2022.