The Tata Group is in talks with potential investors about taking stakes in a new digital platform, people familiar with the matter said, seeking to modernise its consumer businesses as retail giants like Inc. and billionaire Mukesh Ambani pile into the country’s fledgling e-commerce market.

Tata Sons Pvt., the holding company of the $113 billion coffee-to-cars conglomerate, is working with advisers to explore bringing in financial or strategic investors, including global technology companies, the people said, asking not to be identified. The group plans to bring together digital assets across various Tata businesses to create the new entity, according to the people. A Tata Sons representative declined to comment on the stake sale discussions.

Tata’s platform—an e-commerce gateway for its consumer products and services ranging from beverages to jewelry and resorts—may seek to compete with the ambitious plans of Ambani, and Walmart Inc.’s Indian venture Flipkart to tap the nascent market of more than 1 billion consumers. Ambani, chairman of Reliance Industries Ltd, is looking to forge a digital empire, raising more than $20 billion from Facebook Inc. and Google for his newly formed technology venture, Jio Platforms Ltd.

Discussions with potential investors are at a very early stage and there’s no certainty they will result in a deal, the people said.

While bringing in outside investors would lend credence to Tata’s digital ambitions, it may also help the group pare debt after the coronavirus pandemic hammered its flagship businesses.

Tata Steel Ltd’s group net debt was at $14 billion as of June 30, while the net automotive debt of Tata Motors Ltd, which owns Jaguar Land Rover, was around ₹48,000 crore.

Tata Group already has a bunch of entrenched consumer businesses, many of which also have an online presence. These include Tanishq’s jewelry stores, Titan watch showrooms, Star Bazaar supermarkets, chain of Taj hotels and a joint venture with Starbucks in India.

The intention is to consolidate these currently fragmented online operations.

As part of that drive, the conglomerate is building an all-in-one e-commerce app for its swathe of consumer products and services, Bloomberg News had reported last month.

It is expected to be launched by the end of 2020 or early next year.

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