Tata Group's Strategic Move to Strengthen Digital Ventures

The Tata group is gearing up to raise a whopping $1.3 billion for its digital platforms, BigBasket and Tata 1mg. This strategic move, guided by global investment banks Citi and Moelis, aims to solidify Tata's footprint in the competitive realms of quick commerce and online healthcare.

BigBasket's Rapid Expansion and Challenges

With $1 billion allocated to BigBasket, the online grocery giant is set to accelerate its expansion in the quick commerce sector, a domain it initially hesitated to enter. Despite holding a 10% market share in quick commerce, BigBasket's BB Now service dominates 80% of its orders. The company is now focusing on integrating services across Tata brands and expanding its dark store network to 700 locations.

Tata 1mg's Growth Trajectory

Tata 1mg, the group's digital health platform, is receiving $300 million to enhance its express delivery network and physical presence. With a 20% revenue jump and a 75% reduction in losses in FY24, Tata 1mg is poised for significant growth.

Investor Interest and Future Plans

The Tata group is courting global investors, including Canadian pension funds and Asian sovereign funds like Temasek, to fuel its digital ambitions. While an IPO for BigBasket isn't imminent, the platform aims to achieve $1.5 billion in sales in FY25, signaling a robust growth strategy.