Tata Digital seeks external CEO as leadership turmoil continues: Report

This external hiring represents a strategic shift for Tata Digital, which has relied primarily on internal leadership, the report said.

Tata Digital, owner of the Tata Neu superapp, will be appointing an external CEO, marking the third leadership change since the platform's 2019 launch, ET reported citing people aware of the matter.

The decision follows scale-up issues that have hampered growth at the Tata Group's e-commerce division. Former CEO Naveen Tahiliyani, who joined from Tata AIA in March 2024, departed abruptly in July after less than a year amid tensions over strategic direction and platform performance.

ET reported that the new chief executive faces a mandate to overhaul operations and align the group's consumer digital portfolio, which includes grocery delivery firm BigBasket, epharmacy Tata 1mg, retailer Croma, and lifestyle etailer Tata Cliq.

This external hiring represents a strategic shift for Tata Digital, which has relied primarily on internal leadership, the report said.

Myntra cofounder Mukesh Bansal was the first major outside recruit, joining as president in 2021 before leaving two years later.

The leadership reset comes amid broader changes spearheaded by Tata Sons chairman N Chandrasekaran, who has temporarily assumed direct control of Tata Digital. ET quoted insiders as saying that Chandrasekaran is "cracking the whip" on underperforming management, issuing directives to address delivery gaps and strategic drift. Weekly reviews now monitor verticals like BigBasket, Croma, and Tata Cliq, with clear consequences for non-performance. "The message is unambiguous-either deliver or step aside," a source told ET.

As per the report, Chandrasekaran told senior executives, "There's been enough experimentation. Now is the time to fix execution issues, eliminate redundancies, and focus on profitability."

Sources describe the search for a CEO "who can get Tata Digital into shape."

Meanwhile, a committee of senior executives including Gaurav Hazrati, Hardeep Singh Guru, Seshadri Venkateshwaran, Vinay Vaidya, Satyam Mehra, and Abhimanyu Lal manages daily operations.

Tata Sons has strengthened the board by adding Indian Hotels CEO Puneet Chhatwal and Tata Consumer CEO Sunil D'Souza for deeper consumer business expertise. Ankur Verma was named acting chairman of Croma, reflecting tighter operational discipline.

Chandrasekaran has reportedly criticized the lack of synergies between verticals, particularly BigBasket and Tata Cliq. Simultaneously, Tata Digital is repositioning the Tata Neu app as multi-category rather than grocery-focused, a move deemed "painful but necessary" to compete with quick commerce players like Blinkit and Swiggy Instamart.