The company, which holds a consumer-focused digital business and competes with startups, had
First management stock option offered to founders of online grocery retailer BigBasket In which Tata Digital has taken majority stake.
Sources said it may extend similar offers to employees as several candidates from the startup community have been interviewed for various roles, which are understood to have sought ESOPs in their compensation packages. Is.
Bye Digital did not comment.
The company started by hiring some senior TCS talent. This prompted some industry experts to question whether the entity would be able to offer the right startup culture and empower young talent to take on Unicorn and other fast-growing startups in various digital services sectors.
“It’s all about making and capitalizing unicorns stock options “Within less time than the older group engaged in institution building,” said GC Jayaprakash, founding director of boutique executive search firm Accrete Executive Search.
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He added that Tata Digital will have to offer a compensation structure commensurate with the pay packets offered by startups.
“All startup companies including Flipkart, Byju’s, Zomato and Swiggy offer huge compensation packets in view of rising revenues and short shelf life of building valuations to attract top investors,” Jaiprakash said. “Tata Digital, as a new company, will also have to offer such compensation to attract startup talent.”
digital unit – which is
Currently testing a super app among a large segment of Tata Group employees As it prepares to offer various consumer services across group companies on a single platform – is also working on its organizational structure.
Ensuring key decision-making roles for some of Tata’s senior talent as well as outside startup talent in leadership roles is seen as a daunting task.
The new team of employees is expected to help Tata Digital establish a more technology-led consumer interactive culture.
In June the company
Mukesh Bansal, founder and CEO of fitness startup CureFit, has been named its chairman..
While Tata Digital has appointed a senior TCS Pratibha Modan Saha as CEO of its financial services vertical, it is not clear whether the heads of other verticals will be made CEOs.
A senior official close to the development said, “Saha is a senior resource with a great understanding of the finance sector and has the ability to oversee the entire financial vertical, including payments and insurance. “The finance vertical will also be a very important task and will require Saha’s ability. Other verticals probably won’t have a CEO and everyone reports to Tata Digital CEO Prateek Pal,” the person told ET on condition of anonymity.
plan to raise $5 billion
Tata Digital is also
Trying to attract early investors to raise an estimated $5 billion For capital-intensive ecommerce platforms, sources said.
The entity is understood to have held talks with a group of long-term investors including Canada Pension Scheme Investment Board, Temasek Holdings of Singapore, SoftBank Group and the Abu Dhabi Investment Authority.
The group is offering various amongst others in e-commerce, financial services, fashion, lifestyle, to create a loyalty program for its over 45 million customers that enables them to access the Tata ecosystem of services and goods. will help.
The Management Stock Ownership Plan (MSOP) given to some senior executives currently associated with BigBasket was reportedly based on the past performance of the startup and the future potential of the qualified employees.
The vesting timeline begins three years from the date of allotment and increases as the company’s valuation increases before coming to the public market within an estimated 2-3 years.