Tata Group may inject $2 bn into Tata Digital to boost super-app's valuation: Report

With an aim to boost its digital business, Tata Group is considering $2-billion cash infusion in Tata Digital, said a report on Thursday.

Tata Digital Pvt. will receive the additional funding over two years should a deal proceed, reported Bloomberg, which could help the conglomerate's super-app Tata Neu in multiple ways. 

Tata Group has asked Tata Digital to look for ways to boost the valuation of the super app, reported Bloomberg, citing sources.

Tata Neu was modeled on China’s Alipay and WeChat but ran into technical glitches and customer complaints soon after its launch last year. Reliance Industries Ltd and Adani Group are looking to roll out their own super apps as well.

The Tata Neu app, which was launched in April 2022, brings together grocery-to-hotel-to-airline ticket booking services and many of the group's brands on a single platform as the conglomerate seeks to have a bigger play in the fast-growing Indian e-commerce space.

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.

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.