Tata Sons to invest $1 billion more in digital arm

Tata Sons is poised to invest about $1 billion in Tata Digital, over the next few years, people familiar with the matter said. This comes as the parent of the diversified Tata group puts a pause on external fundraising for the ecommerce entity, which houses the superapp, Tata Neu as it reviews its digital strategy with the appointment of a new chief executive officer this week, the people said.

Tata Digital will only tap external investors after the new CEO sets down to focus on execution and scale, one of the persons said. Earlier this week, Tata Digital appointed Naveen Tahilyani, the former managing director of Tata AIA Life Insurance, as its CEO & MD. Tahilyani replaced Pratik Pal who had been holding the charge since the company’s inception in 2019.Tata Sons has invested more than $2 billion in Neu so far and has board approvals for further capital infusion over a five-year period, the people said.  A spokesperson for Tata Sons did not respond to ET’s queries.

Multiple people aware of the management changes said Tata Sons chairman N Chandrasekaran wanted a senior hand with consumer background to steer the next stage of expansion for Neu. “The top brass wants Tata Digital to work on making its operational structure more efficient and agile and scale up the business,” a person said.