According to people familiar with the situation, Bloomberg News stated that The Tata Group is actively considering injecting an additional $1 billion in new funding into its ambitious mega app venture. The conglomerate earlier this year made a hefty $2 billion investment.
The additional cash, which is anticipated to go to Tata Digital Pvt., intends to improve the app’s usability and operational effectiveness in order to provide a more seamless digital experience, according to the article.
The company has chosen to inject this sizable capital as it works to improve its online visibility and solidify its position in the constantly changing digital environment.
To streamline procedures and address any hiccups that would prevent a user-friendly experience, the conglomerate has been in discussions with its digital unit, which runs the company’s primary online platform Tata Neu.
Additionally, the Tata Group is looking into a number of options for future funding of the super app venture. According to the individuals cited in the paper, one method under discussion is utilizing international sovereign and financial investors to get the necessary financial backing.
This strategy is consistent with the one used by Reliance Retail Ventures, one of its main rivals. It is noteworthy that Reliance Retail Ventures constantly obtains capital from outside sources, with recent investments from organizations like the Qatar Investment Authority and KKR & Co. placing a $100 billion value on the business initiative.
Since at least mid-2020, Tata Neu has served as India’s first super app. It was inspired by the popular Alipay and WeChat platforms in China. The app had a promising beginning, but soon after its release last year, it ran into technical difficulties and received complaints from users. Tata Neu offers a wide number of features that enable users to buy goods and gadgets, make airline reservations, make restaurant reservations, and receive access to a wide range of services from brands that are part of the Tata group. Additionally, the app offers access to financial items including loans, insurance, and bill-paying services as well as membership benefits that are extended.
Tata Group invested more than $2 billion over the previous three years to buy businesses like e-pharmacy 1 mg and e-grocer Bigbasket in its quest to build a strong e-commerce portfolio.