 "Tata Neu")
By P R Sanjai and Baiju Kalesh
Tata Group is weighing putting in $1 billion of fresh capital into its super app venture as the salt-to-software conglomerate seeks to improve the digital business, according to people familiar with the matter.
The injection is on top of the $2 billion that Tata Group invested in the venture earlier this year, the people said, asking not to be identified discussing information that is private. Tata Digital Pvt. will receive the new funding in the coming year should a deal proceed, the people 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, according to one of the people.
Tata Group has also urged the super-app venture to explore tapping global sovereign and financial investors for future funding needs, the people said. That would mirror a strategy adopted by its rival Reliance Retail Ventures, which has consistently been raising money from external sources. Qatar Investment Authority and KKR & Co. in recent months invested in Reliance Retail at $100 billion valuation.
Deliberations are ongoing and details of Tata Group’s capital injection into the venture could still change, the people said. A representative for Tata Group declined to comment.
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. 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 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.
