Tata Group is contemplating a substantial move to enhance its digital presence, considering a substantial $1 billion injection of fresh capital into its super app venture. This strategic maneuver aims to further solidify the conglomerate's foothold in the digital business landscape. According to insiders familiar with the matter, this move comes as Tata Group is dedicated to advancing its digital ambitions.
Tata Group is contemplating a substantial move to enhance
its digital presence, considering a substantial $1 billion injection of fresh
capital into its super app venture. This strategic maneuver aims to further
solidify the conglomerate's foothold in the digital business landscape. According
to insiders familiar with the matter, this move comes as Tata Group is
dedicated to advancing its digital ambitions.
The potential $1 billion investment would supplement the
$2 billion already invested in the venture earlier this year. These sources,
who requested anonymity due to the confidentiality of the information, have
suggested that Tata Digital Pvt. will likely receive this additional funding
within the coming year if the deal progresses as planned. The conglomerate has
also set its sights on improving the user experience of its flagship online
platform, Tata Neu, by streamlining its operations and rectifying existing
glitches within the app.
Tata Group has further encouraged its super-app venture to explore the possibility of securing future funding from global sovereign and financial investors. This approach closely mirrors the strategy adopted by its industry rival, Reliance Retail Ventures. The latter has consistently garnered financial support from external sources, with notable investments from Qatar Investment Authority and KKR & Co. in recent months, propelling Reliance Retail to a staggering $100 billion valuation.
While these discussions are ongoing, it's important to
note that details regarding the capital injection into Tata Group's super app
venture may still undergo alterations and refinements. A spokesperson for Tata
Group has opted to remain silent on the matter, neither confirming nor denying
Tata Neu, which has been billed as India's first super
app since at least mid-2020, was designed with inspiration from China's
ubiquitous Alipay and WeChat. However, shortly after its launch last year, the
platform encountered technical hiccups and faced customer complaints. Tata
Neu's offerings encompass a wide spectrum of services, allowing users to
purchase groceries and gadgets, as well as make reservations for airline
tickets and restaurants from brands affiliated with Tata. The app also boasts a
membership service and provides access to financial products, including bill
payments, loans, and insurance.
In an effort to bolster its e-commerce portfolio, Tata Group has made strategic acquisitions, such as e-grocer Bigbasket and e-pharmacy 1 mg, investing more than $2 billion over the past three years. These endeavours reflect Tata Group's commitment to establishing a formidable presence in the digital domain, with the latest $1 billion capital infusion being a pivotal step in this ambitious journey.