Tata Group planning to infuse additional $1 bn in its super app venture: Report
Tata Group has also reportedly urged the super-app venture to explore tapping global sovereign and financial investors for future funding needs.
- Oct 19, 2023,
- Updated Oct 19, 2023 5:05 PM IST
Salt-to-steel conglomerate Tata Group is planning to invest another $1 billion into its super app venture in a bid to improve its digital business, a report said on Thursday. This is in addition to the $2 billion fund that Tata Group invested earlier this year.
The additional funding is expected to be channeled into Tata Digital Pvt and aims to propel Tata Neu's operational efficiency and user-friendliness, ensuring a more seamless digital experience, Bloomberg News reported.
Tata Digital Pvt will receive the new funding in 2024 if the deal is sealed, sources quoted in the report said. The conglomerate has asked the digital unit, which runs its flagship online platform Tata Neu, to streamline its operations and fix glitches in the app to make it more user-friendly.
Tata Group has also urged the super-app venture to explore tapping global sovereign and financial investors for future funding needs, the report further added. A similar strategy has been adopted by Mukesh Ambani-controlled Reliance Retail Ventures, which has successfully raised money from external sources. Qatar Investment Authority and KKR & Co. in recent months invested in Reliance Retail at a $100 billion valuation.
Discussions are on and details of Tata Group’s capital injection into the venture could still change, the report said.
Launched in April 2022, Tata Neu is India’s first super app and is modeled on China’s ubiquitous Alipay and WeChat. A super app is a mobile or web application that combines multiple services into one platform -- sometimes called multi-service tech platforms. Tata's super app allows users to buy groceries and gadgets as well as reserve airplane tickets and restaurants from brands controlled by the Tata group.
The app also offers membership services and financial products such as bill payments, loans and insurance.
Tata Group has acquired a number of companies like e-grocer Bigbasket and e-pharmacy 1mg to give consumers exposure to different services. It has collectively invested over $2 billion in the last three years.
Earlier it was reported that 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.
Salt-to-steel conglomerate Tata Group is planning to invest another $1 billion into its super app venture in a bid to improve its digital business, a report said on Thursday. This is in addition to the $2 billion fund that Tata Group invested earlier this year.
The additional funding is expected to be channeled into Tata Digital Pvt and aims to propel Tata Neu's operational efficiency and user-friendliness, ensuring a more seamless digital experience, Bloomberg News reported.
Tata Digital Pvt will receive the new funding in 2024 if the deal is sealed, sources quoted in the report said. The conglomerate has asked the digital unit, which runs its flagship online platform Tata Neu, to streamline its operations and fix glitches in the app to make it more user-friendly.
Tata Group has also urged the super-app venture to explore tapping global sovereign and financial investors for future funding needs, the report further added. A similar strategy has been adopted by Mukesh Ambani-controlled Reliance Retail Ventures, which has successfully raised money from external sources. Qatar Investment Authority and KKR & Co. in recent months invested in Reliance Retail at a $100 billion valuation.
Discussions are on and details of Tata Group’s capital injection into the venture could still change, the report said.
Launched in April 2022, Tata Neu is India’s first super app and is modeled on China’s ubiquitous Alipay and WeChat. A super app is a mobile or web application that combines multiple services into one platform -- sometimes called multi-service tech platforms. Tata's super app allows users to buy groceries and gadgets as well as reserve airplane tickets and restaurants from brands controlled by the Tata group.
The app also offers membership services and financial products such as bill payments, loans and insurance.
Tata Group has acquired a number of companies like e-grocer Bigbasket and e-pharmacy 1mg to give consumers exposure to different services. It has collectively invested over $2 billion in the last three years.
Earlier it was reported that 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.