Tata Sons to raise $2-2.5 bn for digital business: Report

Tata Sons is planning to raise $2-2.5 billion for its digital business. It is working on launch of a super app. The group might initially raise funds from equity private firms and then look for strategic investors after scaling up the business, according to a report in The Economic Times.

Earlier, Tata Digital Ltd, a wholly-owned arm of Tata Sons, had announced it will invest $75 million (around Rs 550 crore) in fitness-focused Curefit Healthcare for an undisclosed stake.

Curefit's founder and chief executive Mukesh Bansal will join Tata Digital in an executive role as its president, an official statement had said, adding will continue in his leadership role at Curefit as well.

Prior to investing in Curefit, Tata Digital had said it would acquire a majority stake in 1MG Technologies Ltd, an online healthcare marketplace. The company, however, did not disclose the financial details of the transaction.

Tata Digital plans to offer financial services including credit, insurance, and mutual funds on its upcoming super app by way of a neobank, ET had said earlier.

The salt-to-software conglomerate Tata group has been on an acquisition spree in the e-commerce space. Last month it had acquired a majority stake in online grocery seller BigBasket for an undisclosed sum of money.