Tata Group is contemplating infusing an additional $2 billion (₹16,447.78 crore) in fresh capital into its super app venture as it strives to strengthen its digital business.
What Happened: According to a Bloomberg report, the funding will be allocated to Tata Digital over two years if an agreement is reached.
The additional capital may assist Tata Neu, the online platform that was launched in April last year, in enhancing its digital services, fixing technical difficulties, and fulfilling any new spending requirements.
Per a Bloomberg source, Tata Group has instructed Tata Digital to explore strategies to raise the super app’s valuation, but discussions are ongoing, and the size and timeline of the agreement may still change.
Tata Digital, meanwhile, has been asked to review its approach and take the battle to established e-commerce competitors like Amazon and Walmart’s Flipkart.
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Since mid-2020, Tata Neu has been India’s first super app and was modeled after China’s widely used Alipay and WeChat. However, after its introduction last year, it encountered technical glitches and a host of customer grievances.
Local heavyweights Reliance Industries Ltd. and Adani Group are also considering introducing their own super apps.
As of now, Tata Neu enables users to buy groceries and gadgets, reserve airplane tickets and restaurants, and access brands within Tata. The app includes a membership program and financial products like bill payments, loans, and insurance.
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