According to sources familiar with the topic, Tata Group is considering investing $1 billion in its mega app effort as the salt-to-software giant wants to boost its digital operations.
Tata does not supply a single component; rather, this global corporation provides a variety of services to customers in a variety of industries. All of the firms owned by the Tata Group operate separately, with their boards of directors and shareholders, and the corporation operates under their management.
Tata CLiQ is a Tata Group e-commerce firm based in India. It is situated in Mumbai and sells a wide range of things such as fashion, footwear, accessories, electronics, and luxury items. Tata CLiQ is an omnichannel marketplace approach that allows for fast delivery, simple pick-up, and returns. It features over 4,100 brands and 1,000 outlets in over 100 locations throughout India.
The investment is in addition to the $2 billion that Tata Group spent on the initiative earlier this year, according to the sources, who asked not to be named because they were discussing private information. If the purchase goes through, Tata Digital Pvt. would get more cash in the following year, according to the sources. According to one of the persons, the conglomerate has instructed the digital unit, which hosts its major online portal Tata Neu, to simplify its procedures and rectify flaws in the app to make it more user-friendly.
According to the sources, Tata Group has also advised the super-app venture to look into accessing global sovereign and financial investors for future financing requirements. That would be similar to Reliance Retail Ventures’ practice, which has routinely raised funds from outside sources. Qatar Investment Authority and KKR & Co. have just invested in Reliance Retail at a value of $100 billion.
Deliberations are underway, and the nature of Tata Group’s cash investment into the business may potentially alter, according to the individuals. A Tata Group official refused to comment.
Tata Neu, India’s first super app since at least mid-2020, was modeled after China’s ubiquitous Alipay and WeChat, but it quickly fell into technical issues and user complaints following its introduction last year. Tata Neu enables customers to purchase groceries and electronics, as well as book airline tickets and restaurants from Tata businesses. The app also includes a membership service and financial items including bill payments, loans, and insurance.
Tata Group has invested more than $2 billion in e-commerce over the last three years, acquiring companies such as e-grocer Bigbasket and e-pharmacy 1mg.