Tata Sons to Inject Capital into Digital Arm by Mid-2025

Tata Sons, the salt-to-software conglomerate, is reportedly planning to inject capital into its digital arm, Tata Digital, by mid-2025. Until then, Tata Digital will rely on internal funds and debt financing to drive its growth strategy. 

This approach aligns with the companys broader plan to improve execution, accountability and returns on capital under the leadership of its new CEO Naveen Tahilyani. The report reveals that Tahilyani has introduced stricter spending controls across Tata Group businesses while focusing on growth.

This decision comes shortly after Tata Sons chairman N. Chandrasekaran urged the CEOs of group companies to prioritize aggressive growth despite challenges in domestic and global markets. 

Meanwhile, Tata Digital's quick commerce division, BigBasket, faces intense competition from Blinkit, Swiggy Instamart, and Zepto, all ramping up their expenses to secure a stronger foothold.

Read more - J&K Bank Shares Rise 7% Following Appointment of Amitava Chatterjee as MD & CEO

Despite these challenges, Tata Digital has shown positive results for the fiscal year 2023-24, narrowing its losses to INR 1,201 Cr from INR 1,370 Cr in the previous year. The company also saw its turnover more than double to INR 420.5 Cr from INR 204.3 Cr in FY23.

Tata Digital has also seen progress in its brands, with Croma, a major contributor to Tata Neu, appointing Shibashish Roy as CEO to drive growth after restructuring. 

Advertisment

In the same month, Tata Neu launched its quick commerce service, Neu Flash, offering delivery across various categories including groceries and electronics.

Funding News: Your Gateway to Every Funding Update.

Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges and achieving success.