Tata Group considering investing another $1 billion in super app Tata Neu, report
Tata Group is mulling the possibility of investing an additional $1 billion into its super-app venture Tata Neu as part of the effort to boost its digital business, Bloomberg News reported on Thursday. The latest capital infusion underscores Tata Group’s strong commitment to ensure the success of Tata Neu.
Citing people familiar with the matter, Bloomberg added that Tata is considering providing the capital in 2024, although it’s important to note that discussions are ongoing, and the specifics of the deal could potentially change.
“Tata Group is weighing putting in $1 billion of fresh capital into its super app venture as the salt-to-software conglomerate seeks to improve the digital business,” Bloomberg reported.
Earlier this year, Tata Group, a global conglomerate and one of India’s largest, had invested $2 billion in the online platform. This capital injection was aimed at enhancing the platform’s digital capabilities, addressing technical issues, and accommodating any additional financial requirements.
Tata Neu was launched in April 2022, offering a wide spectrum of products, including apparel and airline tickets. Its primary aim is to compete in a rapidly growing market currently dominated by Amazon.com and Walmart’s Flipkart.
While still in its developmental stages, Tata Neu is a super-app that amalgamates a diverse array of services, ranging from e-commerce and grocery delivery to travel booking and financial services. While it’s a work in progress, it holds the potential to become a prominent player in the Indian digital market. A super app, as a concept, brings together a variety of services under one unified platform.
Tata Group is actively looking to bolster its digital footprint, with Tata Neu serving as a pivotal component of this overarching strategy.
The intended $1 billion infusion will be channeled into the further development of Tata Neu and the expansion of its service portfolio. Moreover, the company is reportedly contemplating the option of seeking external funding down the road.
The investment in Tata Neu underscores the growing significance of super-apps within the Indian digital landscape. Super-apps offer a convenient one-stop solution for a wide array of services, and they are gaining popularity among users. Tata Neu is one of the few Indian super-apps and stands poised to make a substantial impact in this dynamic market.
We’ll be closely monitoring this development and will provide updates as they emerge.