Tata Digital's FY23 loss at Rs 1,370.99 cr, up from Rs 1,122.88 cr in FY22

Tata Digital reported standalone revenue of Rs 204.35 crore for the fiscal year 2021-2022

In a period when Indian startups and e-commerce players have begun to underscore profitability, India’s oldest conglomerate’s e-commerce venture presents a different narrative upon examining the results for 2022-23 (FY23). This marks the inaugural full year since the introduction of its application (app), Tata Neu.

Tata Digital reported a standalone revenue of Rs. 204.35 crore for FY23, marking a 13x growth compared with 2021-22 (FY22) revenue of Rs. 15.88 crore. The loss for FY23 amounted to Rs. 1,370.99 crore, which increased from Rs. 1,122.88 crore in FY22.

Tata Digital also witnessed an increase in losses across all its business units. The primary business units fuelling its e-commerce app Tata Neu include BigBasket, Tata 1mg, CLiQ, and Croma.

According to a previous report by Business Standard, Tata Digital had set a target of reaching 100-150 million users in the next two to three years.

BigBasket, one of its earliest acquisitions as the conglomerate entered the e-commerce segment, reported a revenue growth of 30 per cent, reaching Rs. 9,696.67 crore in FY23, up from Rs. 7,462.18 crore in FY22. The revenue comprises two entities: the business-to-business arm, Supermarket Grocery Supplies, and the business-to-consumer arm, Innovative Retail Concepts.

The most significant revenue contribution came from Innovative Retail Concepts, reporting revenue of Rs. 7,434.4 crore, an increase from the previous financial year’s Rs. 5,892 crore. However, BigBasket’s losses also surged. Losses nearly doubled in FY23 to Rs. 1,750.38 crore from Rs. 895.9 crore in FY22.

The company’s next big bet was on the e-pharmacy sector when it acquired a stake in 1mg. The firm’s revenue reached Rs. 1,685.48 crore, reflecting a threefold growth in FY23 compared with Rs. 544.3 crore in FY22. Nevertheless, Tata 1mg also experienced an escalation in losses. Losses for FY23 amounted to Rs. 1,261.3 crore, up from the previous year’s Rs. 486.92 crore.

Infiniti Retail, the entity managing Croma stores, saw its revenue nearly double, reaching Rs. 15,851 crore in FY23, compared with Rs. 8,206.85 crore in the previous year. Losses also climbed to Rs. 956.98 crore. Infiniti competes with Reliance Digital and offline players like Vijay Sales.

Lastly, Tata Unistore, representing Tata CLiQ, reported revenue of Rs. 78.47 crore in FY23. Comparative numbers from the FY22 annual report of Tata Sons are not available. Tata Unistore competes with Nykaa, Myntra, Tira, and other platforms.

Sources indicate that after the 2023 Indian Premier League season, during which Tata Digital was the main sponsor, the app experienced a total of 60 million downloads, and it garnered 75 million NeuPass members. Additionally, over 700,000 Tata Neu HDFC Bank credit cards were issued.