Tata Digital Income Leaps Three-Fold To Nearly Rs. 16,000 Crore After Investments

According to the latest regulatory filings originating from business intelligence platform Tofler, Tata Digital, a subsidiary of the Tata group which invests in & works on its e-commerce platform vertical, revealed a three-fold leap in annual revenues to Rs 15,979 crore in the fiscal year 2021-22 (FY22) from Rs 5,315 crore in the previous monetary yr (FY21). 

In FY22, the new commerce business’ losses ballooned to Rs 3,051 crore, an increase of more than five times from the previous year. 

The bulk of the revenue increase came from the company’s purchase of shares in the online pharmacy startup 1mg and the parent company of the online grocery delivery service BigBasket, Supermarket Grocery Supplies Pvt Ltd. 

Companies like Croma, Tata Fintech, Tata Technologies, and formerly acquired businesses from BigBasket such as DailyNinja & Savis Retail are also included in Tata Digital’s consolidated revenue.

The parent company of BigBasket was primarily responsible for the increased income, which amounted to an additional Rs 7,238 crore. 

The papers indicate that the income contribution would have totaled Rs 8,502 crore if the event had occurred at the beginning of the year. 

Since Tata Digital has the potential to diversify its portfolio of businesses to include more scalable technology companies, it is likely that revenue will increase even further this year. 

On September 29 that Tata Industries planned to hive off some of its key startup companies, including Tata Cliq, Tata Cliq Luxury, Tata Cliq Palette, the Tata Health, to Tata Digital within the next two weeks. 

In FY22, the material costs increased by 3.5%, to Rs 14,518 crore from Rs 4,508 crore the previous year, while the cost of employee benefits jumped by more than 4%, to Rs 1,419 crore. 

While BigBasket was finalizing a new $200 million investment spherical with a valuation of up to $3.5 billion, ET recently reported that Tata Digital was expected to gain financial infusion of Rs 3,462 crore from guardian Tata Sons. 

Recently, 1mg online pharmacy became the first privately held company in the world to be valued at $1 billion or more, becoming a unicorn. Its current valuation is over $1.25 billion. 

1mg was purchased by Tata Digital in June of last year for approximately $450 million. It has a little over 62% ownership in the online pharmacy, which has brought in Rs 523 crore in income despite the fact that the business as a whole lost Rs 489 crore. 

Tata Digital, led by Mukesh Bansal, has 3 unicorns under its stable: the health tech business Curefit, the online pharmacy 1mg, and the grocery delivery service BigBasket. 

BigBasket’s valuation is expected to rise by about 75% in comparison to the last significant infusion of capital the company received. 

Tata Digital is a new player in India’s competitive e-commerce market, competing with giants like Amazon (headquartered in the United States), Flipkart (owned by Walmart), & JioMart (owned by Reliance Industries). 

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