Tata Group Considers Additional $1 Billion Investment in Digital Business and Tata Neu Super App

20 Oct 2023 , 11:18 AM

As the salt-to-software conglomerate looks to boost the digital business, Tata Group is considering investing an additional $1 billion in its mega app endeavor, according to news reports.

The reports stated that the infusion is in addition to the $2 billion that Tata Group already invested in the business earlier this year. If a deal goes through, Tata Digital Pvt. will get the additional funding in the upcoming year, according to the reports. 

According to one of the reports, the conglomerate has requested that the digital unit, which manages its major online portal Tata Neu, streamline its procedures and address software bugs to improve user experience.

Tata Group has also pushed the super-app company to consider reaching out to international financial and sovereign investors for any future funding needs. That would be similar to the approach taken by its competitor, Reliance Retail Ventures, which has a track record of obtaining funding from outside sources. In recent months, KKR & Co. and Qatar Investment Authority invested $100 billion in Reliance Retail.

Modelled after China’s ubiquitous Alipay and WeChat, Tata Neu is India’s first super app since at least mid-2020. However, shortly after its launch last year, the app had technical issues and customer complaints. With Tata Neu, customers may book dining reservations at restaurants and purchase groceries and electronics from Tata-owned brands. The app provides financial services like bill payment, loans, and insurance, and it also has a membership service.

Tata Group has invested more than $2 billion in e-commerce over the last three years by acquiring companies like e-pharmacy 1mg and e-grocer Bigbasket.

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