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Tata Digital struggles to compete with rivals, gets $400 million boost

Business

Tata Sons is putting $400 million into Tata Digital, using dividend money from its big stake in TCS.
This move follows a hefty ₹32,700 crore ($3.9 billion) payout from TCS in FY25 and shows Tata's continued push to strengthen its digital game.

Tata Digital has a super app

Tata Digital runs platforms like BigBasket (groceries), Tata 1mg (healthcare), and Tata Cliq (fashion and electronics)—all bundled into the Tata Neu super app since 2021.
Despite pouring in $2 billion since launch, it's still finding it tough to scale up against rivals like Blinkit and Zepto.

Two CEOs have already left

The company has seen quick leadership changes, with two CEOs leaving in just over a year—reflecting how tricky the digital market has been for them as they try to stand out among giants like Amazon, Flipkart, and Reliance Retail.