Tata Group has additionally asked Tata Digital to look for ways to boost the valuation of the super app.
Indian conglomerate Tata Group is reportedly mulling pumping another $2 billion, or around Rs 16,500 crore, into its super app venture Tata Digital Pvt. According to a report by Bloomberg, if the deal goes through, the injection of funds would take place over two years.
Additionally, the funds could help strengthen Tata Neu, a multi-purpose super-app developed by the Indian company. The funding by Tata Group would help its subsidiary to strengthen its digital offerings, fix technical glitches and meet any new spending needs, the media report added.
The app was launched in April last year and covers categories ranging from electronics and groceries, to travel and more. This online shopping segment is primarily dominated by Amazon and Walmart-backed Flipkart.
Meanwhile, a super app is a consolidated platform where companies provide a slew of products and services. One similar initiative called the e-AMRIT (Accelerated e-Mobility Revolution for India’s Transportation), was launched by NITI Aayog, the country’s public policy think tank, in July for creating awareness about electric mobility in the nation. A combined initiative between NITI Aayog and the UK Government, e-AMRIT, aims to serve as a ‘one-stop site’ to provide all the information related to the adoption of electric vehicles in India.
Back to Tata Group, which has also asked Tata Digital to look for ways to boost the valuation of the super app. Since the deliberations are ongoing, the size and timeline of the deal could still change, the media report noted. Meanwhile, both companies are yet to give any official confirmation.
Elsewhere, back in December, the Indian conglomerate was reported to open 100 exclusive Apple stores across India. These small stores of 500-600 sq ft each will only sell the company’s products like iPads, iPhones, and Apple watches. On the other hand, the large Apple stores typically exceed 1,000 sq ft and also sell Macbook computers.
The tech giant is in talks with Tata-owned Infiniti Retail, which runs the consumer electronics store chain Croma, for the exclusive stores. The development comes at a time when Tata Group mulls buying iPhone maker Wistron’s facility in Karnataka for up to Rs 5000 crores.