super app As it seeks to raise further funding from Tata Sons, Tata Digital, the parent company of Tata Neu, is reportedly raising its authorised share capital from INR 15,000 Cr to INR 20,000 Cr.

Additionally, a report from ET claims that Tata Digital’s board has previously given the company permission to raise INR 3,462 Cr from Tata Sons in two instalments, bringing the total issued share capital to INR 15,934 Cr.

Tata Sons has already contributed INR 5,882 Cr to Tata Digital in April 2022. Tata Sons has so far contributed close to INR 6,400 Cr to the parent company of the mega app.

The IT giant chose to increase the ceiling in order to allow for future investments of up to INR 4,000 Cr because the authorised share capital was only INR 15,000 Cr.

Inc42 was unable to independently confirm the change.

Tata Digital is raising money, according to its regulatory filings, to pay off debt, provide operating capital, make investments, and other things.

Additionally, the monies arrive before Tata Neu makes its debut during the holiday season sales. Tata Digital had already launched a pre-festive sale from September 2 to 4, setting the way for rivals Amazon, Flipkart, and Reliance Retail.

The super app Neu has included financial services as it develops and is anticipated to expand the market with the cash. Recently, Tata Digital invested an additional $40 million in its acquisition of epharmacy, 1mg, making it India’s 107th unicorn.

More recently, rumours have stated that Tata Cliq, the lifestyle ecommerce brand owned by the salt to steel conglomerate, will also transfer ownership to Tata Digital from parent firm Tata Unistore and open physical stores. Another justification for the digital company’s fundraising efforts may be the store’s significant infrastructure requirements.

Tata Neu is still advancing its technology in spite of the resignation of its CTO, Sauvik Banerjjee. The business has approximately 20K items of feedback and is addressing them to improve the overall experience before launching Tata Payments, a payments function.

Additionally, the Tata Group wants to launch Neu for non-Tata companies.

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