Tata Digital is set to launch a Nykaa rival
The online store will be separate from Tata CLiQ, which also deals in segments such as apparel and electronics besides beauty products, and existing ecommerce group verticals like Westside which sell cosmetics, beauty, apparel and lifestyle household products online.
“Tata Digital is diversifying rapidly to capture fast-moving consumer-facing segments within the digital ecosystem. The group sees the upcoming venture as a strategic high-growth platform,” said one of the executives, requesting not to be named.
A Tata Digital spokesperson declined to comment.
Tata Digital, a wholly owned subsidiary of Tata Sons, houses the digital assets of the salt-to-software conglomerate. In May,
Tata Digital acquired a majority stake in online grocery supplier BigBasket. This was followed by
Tata Digital picking up a majority stake in online pharmacy 1mg Technologies, directly competing with Reliance-owned Netmeds. It has also
invested Rs 546 crore in domestic fitness startup Cult.fit.
The latest developments come even as
Tata Digital is learnt to have delayed the launch of its Super App as it awaits clarity on the new ecommerce consumer protection rules.
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The beauty and wellness segment is seeing frenzied action and the online space is being further fuelled as consumers continue to shop online even amid reopening of malls and marketplaces.
A 2021 report by Avendus has predicted the online personal care and beauty market in India to touch $4.4 billion by year 2025. Online beauty and personal care shoppers are likely to increase in numbers by over four times — from 25 million in FY20 to 110 million in FY25, it said.
Beauty and fashion ecommerce
Nykaa is set to launch its initial public offering at a valuation of $4 billion. Others like MyGlamm and MamaEarth are also expanding online and with offline stores. Nykaa recently launched The Global Store to sell international beauty brands.
Purplle raised $45 million from Sequoia, Verlinvest and others in March this year. Mamaearth raised $50 million led by Sofina in July, valuing it at $730 million. MyGlamm also raised funds from venture firm Accel.
( News Source :Except for the headline, this story has not been edited by Rashtra News staff and is published from a economictimes.indiatimes.com feed.)
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