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Tata in talks to bring Microsoft aboard digital venture
December 14, 2021
Tata in talks with Microsoft co. to come on board as an important investor in its new digital platform, people in the know of developments said. The coffee to cars conglomerate is keen to rope in one or two strategic investors and launch a full-blown fundraising drive, they said.
Tata Sons Chairman N Chandrasekaran has upped the ante on modernizing the group’s diverse consumer businesses by integrating digital assets across several businesses under a new entity, as giants such as Amazon and Reliance Industries pile into the nation’s fledgling e-commerce market.
Group insiders said Chandrasekaran is keen to replicate the Reliance Jio playbook, which saw it rise ₹1.45lac cr from investors last year, with Facebook and Google acting as strategic equity partners for the telco.
Executives in the know said the $103bn Indian conglomerate is hopeful of finalizing the anchor investors by next year. The discussions with Microsoft may, however not lead to a transaction.
The challenge for a new investor is the proof of concept. Jio had a product which was up and running. In Tata’s case, all the various pieces are yet to fall in place.