TATA group is considering injecting another $2 billion of fresh capital into Tata Neu which is India’s first super app. This investment is supposed to bolster its digital business as informed by the people familiar with the matter. One of the sources said that this investment can help Tata Neu to strengthen its digital offering, fix technical glitches, and fulfill fresh spending needs. This app was modeled on Chinese super apps like Alipay and WeChat which cover a wide range of services.
As soon as it came on the market last year it ran into technical glitches and customer complaints. Now Tata Group, eager to improve the image and solve the issue, has asked Tata Digital to look for ways to boost the valuation of Tata Neu as per the source.
This application allows customers to buy a wide range of products and services which include buying groceries flight ticket booking, and financial products like loans, insurance, and bill payments are also included. This app has not been able to meet its target, reported by Bloomberg in which it mentioned that Tata Neu would see sales of $4 billion in the year to March 31.
The sales were expected to reach up to the $8 billion target set at the beginning of 2022. Reports say that Tata Digital is reviewing its strategy to compete with e-commerce websites like Amazon, Flipkart, and Walmart. Amid such a high investment companies like Jio and Adani Groups are also considering bringing a super app to cater to customers in a wide range of services.
