Tata Digital expected to use internal and debt funding until mid-2025 (#1688603)

Tata Sons is expected to utilise a mixture of internal funding and debt financing to boost growth at its Tata Digital e-commerce business. The company may not infuse a round of capital in Tata Digital until mid-2025 as it tightens its control on spending. 

“The focus is now on growth and scale,” said an anonymous official close to the development, ET Bureau reported. “Challenges related to organisational cohesion have been addressed, and the priority is to scale up for the next level of growth.”

Tata Digital’s ‘super app’ Tata Neu is focusing on harnessing data to tap into all consumer access points available to reach more shoppers in pursuit of growth. Tata Sons has invested $2 billion into Tata Neu thus far and is now looking to debt to finance its businesses such as fast moving consumer goods retailer BigBasket, the Economic Times reported. 

The business aims to tap into the fast growing quick commerce market to fuel e-commerce growth. Tata Neu’s ‘Neu Flash’ has recently launched with products including fashion, electronics, and groceries as many of the business’ competitors also launch their own quick commerce services.