Tata Group considers injecting another $2 billion into super app venture: Report

Tata Group considers injecting another $2 billion into super app venture: Report

Indian multinational conglomerate Tata Group is considering injecting another $2 billion into its super app venture Tata Neu as the group seeks to bolster its digital business. Speaking to the news agency Bloomberg on Thursday (March 23), sources said that Tata Digital Pvt. will receive the additional funding over two years should a deal proceed.

One source said that this fresh capital could help Tata Neu to strengthen its digital offerings, fix technical glitches and meet any fresh spending needs. 

The source added that the Tata Group asked Tata Digital to look for ways to boost the valuation of Neu. The report said that any fresh capital would come as Tata Digital is reviewing its strategy and fending off e-commerce rivals including Amazon and Flipkart. 

Tata Neu was modelled on China’s Alipay and WeChat. However, it ran into technical glitches and customer complaints after its launch last year. 

Neu allows users to buy groceries and gadgets as well as reserve flight tickets and restaurants from brands under Tata. The app also comes with a membership service and offers financial products such as bill payments, loans and insurance. The super app is expected to meet just half of the sales target in its debut year. 

Bloomberg earlier reported that Neu would see sales of about $4 billion in the year to March 31, compared with the $8 billion target set at the beginning of 2022. In 2020, the news agency said that Tata Sons Pvt. Ltd. had explored bringing in financial or strategic investors including global technology companies, to back the super app. 

(With inputs from agencies)


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