Tata Group Plans $1.3 Billion Fundraise for BigBasket and 1mg
Tata Group is preparing a major fundraising initiative to inject $1.3 billion into its digital subsidiaries BigBasket and 1mg. The planned infusion of capital is aimed at accelerating growth and strengthening the conglomerate’s position in two high-potential sectors: quick commerce and digital healthcare. The group has roped in global investment banks to support the process, with the majority of the funds—$1 billion—earmarked for BigBasket, and $300 million allocated to 1mg.
The move signals Tata’s strategic pivot in its retail operations. BigBasket, which initially built its brand around scheduled grocery deliveries, is now aggressively entering the quick commerce space. The segment has seen a surge in consumer demand, with players like Blinkit and Zepto setting benchmarks for 10–15-minute deliveries. To compete, BigBasket is expected to deploy the fresh capital toward expanding its dark store network, optimizing last-mile logistics, and scaling its express delivery verticals.
Meanwhile, 1mg, Tata’s digital healthcare platform, is looking to expand its footprint in online pharmacy, diagnostic services, and telemedicine. The additional funding will help 1mg strengthen its supply chain, enhance customer experience, and potentially invest in technology and innovation to stay ahead in the rapidly evolving digital health ecosystem.
As part of the fundraising strategy, Tata Group plans to approach long-term investors including Canadian pension funds and Asian sovereign wealth entities that do not have existing interests in competing retail or healthcare ventures. The fundraising process is expected to formally begin by the end of the month.
Tata Sons has already invested over $2 billion into its broader digital initiatives, particularly the Tata Neu superapp, which integrates services across retail, groceries, healthcare, electronics, and more. Despite a slow start, the group remains optimistic about the platform’s long-term potential and views these fresh investments as critical steps toward profitability and market leadership in the digital domain.
With this planned capital raise, Tata is doubling down on its vision to become a dominant force in India’s fast-growing digital economy. By bolstering BigBasket and 1mg, the group is positioning itself to challenge both domestic competitors and global players in the online retail and health sectors.
