Tata Group Reportedly Plans $1.3 Billion Fundraise for BigBasket and 1mg.

The Tata Group is set to raise $1.3 billion for its digital ventures, BigBasket and Tata 1mg, with global investment banks Citi and Moelis appointed to oversee the process, sources told The Economic Times. The fundraising initiative aims to bolster the group's competitiveness in the fast-growing quick commerce and online healthcare sectors, where it currently trails more aggressive market players.

As part of its planned $1.3 billion fundraising effort, the Tata Group is earmarking $1 billion for BigBasket and $300 million for Tata 1mg—both housed under the Tata Digital umbrella. Global investment banks Citi and Moelis have been appointed to lead the capital-raising process, sources told The Economic Times.

BigBasket, once hesitant to enter the quick commerce space, is now ramping up its presence aggressively. Tata 1mg, the group’s digital healthcare platform, will use the additional capital to strengthen its market position in the competitive online health segment.

According to the report, concerns were raised during a business review earlier this year about BigBasket falling behind rivals like Blinkit and Zepto. Tata Sons Chairman N Chandrasekaran has reportedly emphasized the need for digital business heads to demonstrate a clear path to profitability, warning that continued capital support will not be indefinite.

“The Tata Group has already invested substantial capital into Tata Digital’s ventures, and the expectation now is to deliver results,” said a senior executive familiar with the matter. “BigBasket, in particular, is considered mature enough to drive growth independently, but it must act swiftly to catch up in areas it previously overlooked—especially quick commerce, which requires significant funding.”

To date, the group has invested more than $2 billion into Tata Neu, its flagship superapp, which has reportedly underperformed expectations.

Potential investors being approached include Canadian pension funds and sovereign wealth funds across Asia—such as Singapore’s Temasek—that have no conflicts of interest with competing players. While some existing investors may be seeking an exit, an IPO for BigBasket is not currently planned.

Tata currently holds over 65% stake in BigBasket, which was last valued at $3.2 billion. The company’s quick commerce arm, BB Now, now accounts for around 80% of its total orders, yet it only holds a 10% market share in the fast-growing segment.

In a bid to strengthen its ecosystem, BigBasket plans to integrate offerings from across Tata-owned brands, such as Croma, Zudio, Tata 1mg, and CaratLane. It also plans to launch prescription drug sales via its platform soon.

“More than 95% of BigBasket’s operating revenue in FY24 came from grocery sales,” said a group executive. The platform has recently merged its BBdaily subscription service into the main app and intends to expand its dark store network to 700 locations, including in tier II to IV towns.

BigBasket reported a 6.27% increase in operating revenue for FY24, reaching ₹10,061.9 crore, while its losses narrowed by over 20%. The company is now targeting ₹12,400 crore (approximately $1.5 billion) in total sales for FY25, according to sources.

Tata 1mg also posted robust growth, with revenue rising 20% year-on-year to ₹1,968 crore in FY24, while losses declined sharply by 75% to ₹313 crore, as per recent filings with the Registrar of Companies (RoC). Tata Digital holds a 63% stake in the health tech platform, which is backed by notable investors, including Sequoia Capital, Intel Capital, and the Gates Foundation. Looking ahead, Tata 1mg aims to scale both its express delivery network and its offline footprint.

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