Tata Group considering additional $1 billion investment in super-app venture
What's the story
Tata Group is considering injecting an additional $1 billion into its super-app venture, Tata Digital Pvt, following a $2 billion investment earlier this year.
The conglomerate aims to boost its digital business and has directed the unit to streamline operations and fix app glitches for a smoother user experience.
Tata Group has also encouraged the venture to seek global sovereign and financial investors for future funding needs, similar to rival Reliance Retail Ventures.
Details
The company is working on addressing technical issues
Launched in mid-2022, Tata Neu, India's first super-app, faced technical glitches and customer complaints shortly after its debut.
Inspired by China's Alipay and WeChat, Tata Neu offers a wide array of services, such as buying groceries and gadgets, booking flights and restaurants, and providing financial products like bill payments, loans, and insurance.
Tata Group's additional investment aims to tackle these issues and enhance the app's overall user experience.
What Next?
Acquisitions are being made to strengthen e-commerce portfolio
Over the past three years, Tata Group has invested more than $2 billion in acquiring companies like e-grocer Bigbasket and e-pharmacy 1mg to bolster its e-commerce portfolio.
These acquisitions have enabled Tata Neu to expand its range of services and compete with other major players in the Indian e-commerce market.
The proposed extra $1 billion investment will further support Tata Neu's growth and development as a leading super-app in India.