Tata's first ecommerce platform struggles to click as losses rise after exit from key categories
Tata Group is continuing to burn money on its first ecommerce platform, Tata Cliq.Tata UniStore, which owns and runs Tata Cliq, posted a 16% increase in net loss at ₹874.7 crore for fiscal 2022-23, even as its turnover dropped to less than half at ₹407.7 crore compared with ₹844.6 crore the year before, as per its latest regulatory disclosures. In its filings with the Registrar of Companies made on July 25, Tata UniStore attributed the drop in turnover to the platform's exit from certain categories of electronics, and said the loss increased as it continued to invest in scaling up business.
The company last year exited electronics categories like mobile phones, televisions, refrigerators and laptops to focus on apparel and lifestyle products, even as the Tata Group's super app, Tata Neu, focused on electronics among other categories. «During the year under review (2022-23), the company made a strategic choice and exited some major segments of the electronics category.
The company took significant steps to further grow its ecommerce platforms, have stronger partnerships with brands, and a strong association with Tata Neu — the super app platform of the Tata Group,» Tata UniStore said in the filings. Tata UniStore declined to comment when asked about the results.
Mohit Yadav, founder at business intelligence firm AltInfo, said as Tata UniStore strategically exited certain electronic categories, the 52% reduction in operating income highlighted the need for proportional expense adjustments. «A more comprehensive effort is essential to ensure sustainable and resilient operations moving forward,» he said.
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