Tata Group is considering investing $2B into Neu: Report
The additional funds can help Tata Neu develop its digital products, resolve technological issues, and satisfy any new expenditure requirements.
Thursday March 23, 2023,
2 min Read
is potentially looking to put in an additional $2 billion into its super-app Neu to strengthen its digital operations.
Tata Digital would get the additional funds over two years provided a deal happens, Bloomberg reported, however, since the conglomerate is still deliberating the move, the magnitude and timeframe of a deal might vary.
YourStory could not independently verify the report.
Tata Group has directed Tata Digital to look for methods to increase the value of its super app, the report noted. These additional funds might help Tata Neu develop its digital products, resolve technological issues, and satisfy any new expenditure requirements, the Bloomberg report added.
Queries sent to Tata Group remain unanswered. This story will be updated to reflect its comments.
Tata Neu, which was modelled on China’s Alipay and WeChat, is India's first super app since at least mid-2020. However, the super app ran into technical glitches and customer complaints soon after its launch last April.
Using the super app users can purchase groceries and gadgets. It also allows users to reserve airline tickets and restaurants from brands under Tata. It offers financial products such as bill payments, loans and insurance as well.
Conglomerates like Reliance Industries Ltd and Adani Group are also looking to roll out super apps.
Tata Neu is expected to do sales of about $4 billion in the year to March 31, compared with the $8 billion target set at the beginning of 2022, according to another Bloomberg News report.
Edited by Kanishk Singh