The app, which celebrated its one-year anniversary on April 7, received a new look as well as improved navigation and payment processes, resulting in its strongest growth period on all counts, including income.
Tata Sons has invested more than $2 billion in the mega app Tata Neu, which has enjoyed a rise in sales after being redesigned in time for the recently concluded Indian Premier League (IPL), according to Tata Digital CEO Pratik Pal. He also stated that the company expects to be profitable in three to five years.
The app, which celebrated its one-year anniversary on April 7, received a new look as well as improved navigation and payment mechanisms, resulting in its strongest growth period on all counts, including revenue, according to Pal, who was named CEO of Tata Digital in 2019. Prior to that, he spent more than 27 years in significant executive capacities with Tata Consultancy Services (TCS).
“The app had over one million seconds of on-screen visibility through on-ground branding and around 110 million campaign reach with 13 million installs and 75 million visits during the IPL,” Pal stated in his first interview as CEO of Tata Digital. “We have 75 million NeuPass members and 60 million total installs.” Almost 60% of our clients are return customers, and multi-category customers have expanded from less than 10% to more than 25% in the last year.”
Tata Digital, Tata Sons’ wholly-owned e-commerce company, is currently working to meet consumer demand by delivering a broader variety of items, even some in which the Tata Group may not be present.
“End-to-end consumer experiences matter, and that is a big roadmap for us,” he explained. “Because of our assets and consumer touchpoints, our omnichannel experience has to be the best in class.” We are currently developing a strategy to expand our omnichannel platform and provide more consumer options by adding new products and categories that the Tata universe may not have.”
The company had to go back to the drawing board immediately after the formal debut last year to address complaints about problems, poor user experience, and payment issues.
“Over the last eight months, we worked to make the app experience best in class… and we expanded consumer offerings and launched multiple financial services,” Pal explained. “With a rating of 4.2, consumers have responded positively to the new version, and all app parameters are currently on par with industry benchmarks.” We… have created a solid roadmap for customer experience innovation.”
The app began with three primary categories: electronics, groceries, and e-pharmacy. Then came Air Asia and Indian Hotels, followed by Titan, Tanishq, and Westside. On the financial services front, the Tata Neu HDFC card was introduced in November, with the Titan, Tanishq, and Westside reward programmes merged into the NeuPass. In addition to loans and insurance, the app supports United Payments Interface (UPI) transactions and bill payments.
“We are looking at broadening our offerings and broadening our horizons in order to weave together similar products,” Pal said.
This might include niche markets like adventure travel. It is also considering incorporating 1mg, fitness, and insurance into a subscription model. This will give consumers with health, insurance, fitness, and medications all in one app.
“We have these assets, which we stitch together for the consumer,” Pal explained. “For example, 70-80% of wedding needs are met by Tata brands Tanishq, Indian Hotels, flights (Air India, Vistara), and apparel (Westside), which the super app connects as a one-stop solution.”
Tata Digital is considering future funding possibilities while keeping profitability in mind.
“We are looking at profitable growth within three to five years–profitable revenue is the focus,” he stated. “We are constantly evaluating fund-raising options.”
Pal stated that Tata Digital is in talks with worldwide luxury brands about selling their products directly through Tata Cliq. It presently sources Tata Cliq Luxury needs from the Reliance Group’s Major Brands. Pal refrained from discussing inventory issues in the category because it competes directly with the Reliance Group’s premium app, Ajio Luxe.
“There are no such issues, and we have a very good relationship with Major Brands,” he explained. “Tata Cliq is constantly looking to bring in new brands, and we are also reviewing our brand portfolio.” We have a terrific cohort of premium consumers thanks to IHCL and Tanishq, and we are now attempting to expand our luxury category, which is a significant priority.”
Tata Digital’s loss in FY22 increased to 3,051 crore from 536 crore in FY21. Total operating revenue increased to 15,979 crore from 5,315 crore.
Is Tata Neu truly a fantastic app? Yes, Pal confirmed.
“There is no particular definition of a super app,” he explained. “A super app is one that assists a consumer with UPI transactions, pays bills, purchases electronics, or groceries.” A fantastic app is one that meets 50% of user needs and fulfils daily, monthly, or annual needs. We are now concentrating on expanding the consumer options available through this app.”
Pal stated, “Tata Digital has a startup mindset, but with a beautiful mix of a startup company and governance standards of the Tata Group.”
Over the last two to three years, Tata Digital has created a strong executive team that is focused on delivering.
“Being a part of TCS has taught me to be resilient and to take calculated risks in a mindful manner,” he explained. “It taught us to think long term.” We are constructing a lean, agile company that prioritises organic and recurring growth.”
