Aggressive Push
Tata Neu is now aggressively leveraging a data-driven strategy to tap every consumer access point within the system, including partnerships with external entities, officials said. As part of this strategy, most of the new funding for BigBasket and 1mg is being secured through debt rather than fresh equity infusion. Tata Sons has invested over $2 billion in Tata Digital’s super app to date.
ET had reported earlier about financing plans of egrocer BigBasket and epharmacy 1mg.
Known for his execution expertise, Tahilyani is driving performance by offering Esops to top performers and instilling greater accountability. A new set of business leaders has also been brought in to strengthen this performance-oriented culture, officials noted.
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In November 2024, Croma, which contributes the highest revenue to Tata Neu, appointed Shibashish Roy as its new CEO. Roy has been tasked with driving growth following an initial round of restructuring aimed at enhancing agility.
“The focus is now on growth and scale. Challenges related to organisational cohesion have been addressed, and the priority is to scale up for the next level of growth,” said an official aware of the plans.
Tata Digital did not comment.
To be sure, Tata Sons chairman N Chandrasekaran has instructed the management to focus urgently on profitable growth.
“The message is clear. Grow but also in a sustainable manner as some of the large businesses, like BigBasket, will be tapped for an IPO over the next couple of years,” said a source aware of the company’s monetistion plans of Bombay House. While the core grocery business of BigBasket had stabilised on profitability, the Bengaluru-based firm is spending most of its capital toward quick commerce following its pivot to the 15-30 minute delivery service.
Tata Neu has also launched Neu Flash to users selling grocery, fashion, electronics and other items. Quick commerce is seeing intense investment and competition from players such as Zepto, Blinkit and Instamart, while the likes of Flipkart have also upped the ante with Minutes. Amazon, too, is on the verge of entering the sector.
Last Fiscal Revenue
Last year, Neu recorded a GMV (gross merchandise value) of less than $1 billion, excluding individual gross sales from apps like 1mg and BigBasket.
Tata Digital reported standalone revenue of ₹204.3 crore in FY23, reflecting nearly 13-fold growth compared to the previous year, as per Tata Sons’ annual report. However, the unit also recorded a standalone loss of ₹1,370 crore, a 23% increase year-on-year.
For FY24, Tata Digital’s total turnover more than doubled to ₹420.5 crore from ₹204.3 crore in FY23. The company also narrowed its standalone losses to ₹1,201 crore from ₹1,370 crore in the previous year.
These figures do not include the performance of its subsidiaries. Croma, one of the largest businesses on Neu, reported a turnover of ₹15,851 crore in FY23, with a loss of ₹325 crore during the same period. Tata Cliq reported revenue of ₹78.5 crore in FY23, along with a loss of ₹175 crore, as per the report.
Tata Digital reported an aggregate GMV of ₹37,355 crore in FY24.
Fashion, a key category for any ecommerce platform, makes Tata Cliq a crucial business for Neu. Tata Cliq, housed under Tata Unistore and led by CEO Gopal Asthana, is collaborating closely with the Neu team to scale up its fashion business. Asthana was appointed CEO following the departure of Vikas Purohit last October.
