Tata Digital seeks additional funds for expansion

Tata Digital has asked for additional funds from its parent company Tata Sons. Tata Digital has asked for these funds to fuel its growth and expansion. Officials close to this matter have told that these funds have been asked in recent weeks. According to these officials in order to compete with its rivals, such as Amazon Inc, Wal-Mart, besides Reliance Group’s Jio platforms, etc, Tata Digital has sought around $500 million in order to promote and expand itself aggressively. An official while informing about this investment said: “This fund infusion of $500 million would be done in multiple tranches."  Tata Group is expected to launch its Super App called Tata Neuto in the month of April this year. Currently, the valuation of Tata Digital stands at around $18 bn. Tata Digital comprises of companies such as Big Basket, 1 mg, Croma, Tata Cliq, etc. However, Investors first want to observe the revenue and operations of the group before any investments. According to a source, “Some of the sovereign and pension funds were looking to participate in the funding round as co-investors and not as lead investors. So, Tatas wanted to finalise the anchor investor part first to get larger capital access from financial investors.”