Synopsis
Tata Digital is pivoting Tata Neu from a broad commerce aggregator to a loyalty-led financial services platform, focusing on payments, investments, and insurance. This strategic shift acknowledges that existing Tata businesses already have strong customer relationships, aiming for Tata Neu to complement rather than compete with them.Listen to this article in summarized format
Former Google veteran Sivanandan, who took charge seven months ago as Tata Digital’s third CEO in four years, said his immediate priority was to review each of the businesses amid a wider streamlining of operations. Tata Digital's units include grocery etailer BigBasket, epharmacy 1mg, consumer electronics retail chain Croma and luxury ecommerce under Cliq. “Today I have the benefit of hindsight that my predecessors have given me,” Sivanandan said. “We are laser focused on loyalty and financial services. If you’re spending, we recognise you. You can get the card, pay and invest. The aim is to keep this flywheel running.”
The company will push relevant financial products including payments, investments and insurance. Since 2021, Tata Digital has repeatedly altered its approach and seen churn at senior levels as it sought to stabilise Tata Neu.
Sivanandan joined after the exit of predecessor Naveen Tahilyani last year. Tahilyani had replaced TCS veteran Pratik Pal, who came on to steer Tata Digital after Myntra founder Mukesh Bansal left the group.
Tata Digital reported a consolidated operating revenue of approximately Rs 32,188 crore for the year ending March 2025. While revenue growth slowed, the company narrowed its net loss to Rs 828 crore in FY25 from Rs 1,201 crore in FY24. The numbers for the year ending 2026 have not been officially reported.
Tata Neu, launched in 2022, was envisioned by Tata Sons chairman N Chandrasekaran as a single app that would bring together the entire Tata Group consumer ecosystem including groceries, electronics, flights and healthcare under one umbrella, along the lines of China’s WeChat by Tencent, Alipay by Alibaba and Meituan.
“India’s consumer tech has evolved to be what is called a point play--for each use case, there is an app,” he said, adding that the average Indian spends over 70% of time on just their top five apps. “Did commerce work? Probably not as much.”
He said the shift reflects a key learning from the past few years: many Tata-owned businesses already have direct customer relationships through their own apps, websites and stores. BigBasket, 1mg, Titan, Croma and others have established user bases, reducing the need for customers to route all activity through a single umbrella app. “Why would we expect consumers to always prefer yet another window when they already have strong relationships with brands they trust?” he said. He added that Tata Neu would now complement portfolio companies rather than compete with them for traffic.
Sivanandan pointed to what he called early signs of recovery at Big Basket, which has lost ground to Blinkit, Zepto and Swiggy Instamart as it didn’t move fast enough to embrace quick commerce. He cited data from brokerage firm CLSA showing Big Basket’s weekly active users at an all-time high and said the company expects to grow revenues over 70% year on year.
“Every fifth download is a Big Basket download,” he said, adding that the company’s differentiation would come from quality through private labels such as Fresho and BB Royal rather than competing purely on speed or pricing.
Leadership transitions
ET reported April 3 that BigBasket and 1mg are likely to undergo significant leadership transitions with their founders looking to leave operating roles amid uncertainty about the direction of these businesses. On IPOs by Big Basket and Tata 1MG, Sivanandan said the group continues to evaluate options but the companies have work to do before they are ready for a share sale. The group remains committed to funding these businesses for the long term.
“It’s a conglomerate that takes a really long-term view,” he said when asked how long the group will support the loss-making businesses in highly competitive consumer tech sectors. Tata Neu has seen its headcount slashed by over half as it looks to streamline operations, ET reported on November 20 last year. The group also began centralising digital marketing mandates from Titan, IHCL, Tata Motors and Tata Consumer Products under Tata Digital.
Sivanandan said Tata Digital had moved to a leaner organisational structure with fewer layers and clearer accountability. The aim, he said, was not simple cost-cutting but creating businesses that were “fit for purpose” and able to move faster. He acknowledged that leadership churn and constant scrutiny over the past few years had affected morale, making internal confidence an important management priority. “The most important thing is that the organisation must believe it will win,” he said.
Omnichannel presence
Alongside Tata Neu’s repositioning, Tata Digital is sharpening the strategy of each operating business.
Croma is already profitable and expected to cross Rs 25,000 crore in sales this year, he said. The company plans to deepen its omnichannel presence, improve in-store experiences and expand private-label offerings. One of India’s largest electronics retailers, Croma is present in more than 200 cities. Sivanandan said its reach beyond top metros was a key advantage. “We do not just want to serve big India. We want to serve India across markets,” he said.
Tata Cliq, the group’s ecommerce fashion and lifestyle platform, is being repositioned toward the premium and luxury retail market, an area in which management sees stronger differentiation and higher-value consumers. “We want to meaningfully focus on luxury and bring the right assortment quickly to our users,” he said.
Healthcare platform Tata 1mg remains one of the stronger assets in the portfolio, with a leadership position in e-pharmacy and diagnostics, Sivanandan said. Most of the business is already ebdita positive, excluding investments being made in offline pharmacy expansion.
The most closely watched business remains BigBasket, where Tata Digital has had to respond to the rapid rise of quick commerce. Sivanandan said BigBasket had spent the past year focussing on investments in dark stores, fulfilment infrastructure, technology and assortment.
“We have north of 800 stores and fulfilment centres. We first focused on infrastructure, then the storefront, then assortment. Those pieces are now coming together,” he said.
