Tata Sons infused just under ₹3,000 crore into Tata Digital at a valuation of $10.3 billion in April 2025, marking the first time the company has reduced its valuation since its inception. According to Mint, this represents a 5.5% decrease from the previous valuation of ₹10,900 crore when Tata Sons invested ₹4,000 crore in February 2025. The total investment in Tata Digital now stands at over ₹26,000 crore across seven years, with the company accumulating ₹16,958 crore in losses and maintaining approximately ₹9,000 crore in bank borrowings by FY25 end. Tata Sons owns 99% of Tata Digital while Ratan Tata Endowment Foundation holds 1%, with the latest investment valuing shares at ₹47.75 each.
Maya Tata, the 37-year-old daughter of Tata Trusts chairman Noel Tata, is exploring a move out of Tata Digital amid a sweeping restructuring at the company. According to reports from The Times of India, Maya is weighing roles across several Tata Group companies, including Trent and Tata Consumer Products, with people indicating she is favouring the listed retailer. The potential exit comes as Tata Digital faces heightened scrutiny from Noel, who has raised concerns about losses at the business amid a broader stand-off over the reappointment of Tata Sons chairman N Chandrasekaran for a third term.
Despite the substantial investment, Tata Digital's attempt to integrate multiple services including BigBasket, 1mg, Air India, and Tata CliQ into a unified super-app has failed to resonate with consumers. As reported by Mint, the company has experienced three CEO changes in its seven-year history: Pratik Pal, Naveen Tahilyani, and the current CEO Sajith Sivanandan, who took charge in September 2024. Tata Digital has struggled to merge acquired startups like BigBasket, which was among grocery delivery leaders when acquired in May 2021 but fell behind competitors Blinkit, Instamart, and Zepto. The company's super-app ambition has been criticized for lacking high-frequency consumer products, with none of its businesses ranking among the top three in their respective categories.
Future funding for Tata Digital could become more closely linked to operating milestones such as customer retention, cross-selling, and clearer timelines for narrowing losses, according to Mint. The company's digital ambition faces skepticism, with no external investors participating compared to Reliance Industries raising ₹75,000 crore from sovereign wealth funds and private equity firms in 2020. Noel Tata's questioning of Tata Digital's roadmap at the February 2025 board meeting prompted the six-member Tata Sons board to defer a decision on granting Chandrasekaran a third term, with the company expected to discuss his term at the June 12 board meeting. The markdown should not be viewed as a collapse in confidence but indicates a reset in expectations, with the company needing to demonstrate clearer economics of its ecosystem.
