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Tata Sons set to infuse $400 million into Tata Digital as platform struggles to scale

| @indiablooms | Jul 18, 2025, at 12:52 am

Mumbai: Tata Sons is planning a capital infusion of $400 million into Tata Digital, the conglomerate’s digital commerce arm, as the platform battles stiff competition and internal churn, Moneycontrol reported, citing sources familiar with the matter.

The funding, according to the report, will come from Tata Sons’ dividend earnings from Tata Consultancy Services (TCS), with no plans for further dilution of its stake in the IT major.

In FY25, Tata Sons received over ₹32,700 crore in dividend income from TCS, where it holds a 71.77% stake.

Earlier this year, the holding company had sold TCS shares worth more than ₹9,300 crore to strengthen its balance sheet.

Tata Digital, which includes platforms like BigBasket, Tata 1mg, and Tata Cliq, has so far struggled to carve out a strong position in India’s fiercely contested e-commerce space.

The group has already invested $2 billion over the past three years, but the venture continues to trail behind established players.

Its grocery unit BigBasket has ceded ground in the booming quick commerce segment to rivals like Blinkit and Zepto, which have made deeper inroads with faster delivery models.

Tata Neu, the super app that was meant to unify the group’s digital offerings, has failed to gain meaningful traction.

The challenges have been compounded by frequent leadership exits. Founding CEO Pratik Pal stepped down in February 2024, and his successor, Naveen Tahilyani, quit in May 2025 after just over a year to join Prudential Plc in a global role.

In this backdrop, the fresh capital from Tata Sons is expected to be critical for Tata Digital’s turnaround efforts, especially as rival platforms continue to raise substantial funds from private equity and public markets.

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