Tata Sons carries forward Ratan Tata's legacy, to invest $400 million in ..., details here

Taking forward the legacy of Ratan Tata, Tata Sons, the holding company of the $100-billion Tata group, has decided to invest $400 million in Tata Digital, the digital arm of the conglomerate. However, the Tata Sons will not dilute its stake in the company. It will inject the money, drawing from the TCS dividends it would receive. Tata Consultancy Services (TCS) has announced that it will pay Rs 130 per share as a dividend during the financial year. Tata Sons will get Rs 33,743 crore. Tata Digital comprises BigBasket, Tata 1mg, and Tata Cliq. Tata Sons holds a 71.77% stake in TCS after it sold shares worth over Rs 9,300 crore in 2024. 

Tata Digital struggles

The Tata Group holding company will infuse money into the Tata Digital at a time when the digital arm of the conglomerate has been struggling to make its mark in the competitive e-commerce landscape of the country. Tata Digital was launched in 2021 as a 'super app' ecosystem to bring grocery (BigBasket), healthcare (Tata 1mg), fashion and electronics (Tata Cliq) on a single platform, Tata Neu. Soon, it went on aggressive marketing and acquired and integrated many brands. It positioned itself to challenge contenders like Amazon, Walmart’s Flipkart, and Reliance Retail.

Blinkit, Zepto outpace BigBasket

Tata group has already invested $2 billion in Tata Digital. However, Blinkit and Zepto have outpaced BigBasket, and captured g a greater share of the fast-growing 'quick commerce' market. Troubles have rocked the topmost management of the digital arm of the Tata group. Tata Digital's founding CEO, Pratik Pal, who had led the company since the launch of Tata Neu, quit in February 2024 after he failed to develop the app as a unified consumer platform. The company appointed Naveen Tahilyani as CEO and MD in February 2024. He stepped down abruptly in May 2025 to join Prudential Plc in an international role.