Tata Digital Revenue: Tata Digital revenue tripled to about Rs 16,000 crore after acquisitions

Tata Digital, a subsidiary of the Tata Group which invests in and operates its e-commerce vertical, reported a tripling of its consolidated revenue to Rs 15,979 crore in the financial year 2021-22 (FY22) from Rs 5,315 crore in the prior fiscal year (FY21), according to the latest regulatory documents sourced from business intelligence platform Tofler.

Losses of the new business venture increased more than fivefold to Rs 3,051 crore in FY22 due to new acquisitions.

The rise in revenue comes primarily from the company’s acquisition of a majority stake in online pharmacy startup 1mg and Supermarket Grocery Supplies Pvt Ltd, the parent company of online grocer BigBasket.

Tata Digital’s consolidated revenue also includes companies such as Croma, Tata Fintech, Tata Technologies and previous BigBasket acquisitions such as DailyNinja and Savis Retail.

The main contributor to the increase in revenue was BigBasket’s parent company, which added Rs 7,238 crore to total revenue.

The acquisition took place in May 2021.

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Acquisitions Triple Tata Revenue Digital_Graphic_ETTECHETtech

If this had taken place at the start of the year, the revenue contribution would have been Rs 8,502 crore, according to the documents.

Revenue will likely multiply again this year as Tata Digital may expand its business portfolio to include more scalable technology companies.

ET reported on September 29 that Tata Industries was set to divest some of its major start-up businesses such as Tata Cliq, Tata Cliq Luxury, Tata Cliq Palette and Tata Health to Tata Digital over the next two weeks as part of a ‘a scalable consolidation movement e-commerce entities under one roof.

Materials cost increased by 3.5 times to Rs 14,518 crore from Rs 4,508 crore in the previous year, while employee benefit costs also increased more than four times to Rs 1,419 crore during exercise 22.

ET recently reported that Tata Digital is set to receive a capital injection of Rs 3,462 crore from parent company Tata Sons, while BigBasket completes a new $200 million funding round at a valuation of up to $3.5 billion. .

Online pharmacy 1mg became a unicorn – or private company with a valuation of $1 billion or more – earlier this month and is valued at over $1.25 billion.

Key takeaways from FY22_Graphic_ETTECHETtech

Tata Digital acquired 1mg for a valuation of around $450m in June last year. He owns just over 62% of the online pharmacy, resulting in a revenue contribution of Rs 523 crore, while the business suffered a loss of Rs 489 crore.

In total, Tata Digital has three unicorns in its stable – Curefit, the health tech start-up founded by Mukesh Bansal, 1mg and BigBasket.

For BigBasket, the estimated increase in valuation will be around 75% from the last primary cash injection into the company.

Tata Digital is the new entrant in India’s fast-growing e-commerce space, taking on established players including US online retailer Amazon, Walmart-owned Flipkart, and Reliance Industries-owned JioMart.

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