Tata Group mulls releasing $2 billion into super-app Neu
Tata Group is concerning injecting another $2 billion of fresh capital into its fantastic app venture as the salt-to-software conglomerate wants to bolster its digital business, as according to people familiar with it. Should a transaction go through, Tata Digital Pvt. will get the additional funds over a two-year period. One of the people said that the fresh capital could help the online platform Tata Neu, which went live last April, to strengthen its digital offerings, fix technical glitches and meet any new spending needs.
Tata Group has asked Tata Digital to look for ways to boost the valuation of the nifty app, the person said, asking not to be identified discussing information that is private. Deliberations are ongoing and the conglomerate could still change the size and timeline of a deal, the people said. Representatives for Tata Group and Tata Digital declined to comment. Any fresh capital would come as Tata Digital is reviewing its strategy and fending off entrenched e-commerce rivals such as Amazon.com Inc. and Walmart Inc.’s Flipkart. Tata Neu, India’s first super app since at least mid-2020, was modeled on China’s ubiquitous Alipay and WeChat but ran into technical glitches and customer complaints soon after its launch last year. Local heavyweights Reliance Industries Ltd. and Adani Group are looking to roll out their own super apps as well.
Tata Neu allows users to buy groceries and gadgets as well as reserve airplane tickets and restaurants from brands under Tata. The app also comes with membership service and offers financial products such as bill payments, loans and insurance. Tata Neu is expected to meet just half of the sales target in its debut year. The super app will see sales of about $4 billion in the year to March 31, compared with the $8 billion target set at the beginning of 2022, Bloomberg News reported in January. Tata Group acquired firms including e-grocer Bigbasket and e-pharmacy 1mg to bolster its e-commerce portfolio, investing more than $2 billion in the past three years. Tata Sons Pvt., the group’s holding company, explored bringing in financial or strategic investors, including global technology companies, to back the super app, Bloomberg News reported in 2020.
Read More News :
PM Modi in Varanasi, to unveil projects of over Rs 1,780 cr
Why Instagram Likes Matter and How To Buy More Likes on Instagram in India?