Tata New, India’s first super app since mid-2020, was based on China’s Ali-pay and WeChat, but soon after its launch last year it faced technical glitches and customer complaints.
Tata Group has taken a big decision to expand its digital business, which is enough to discourage e-commerce companies like Reliance JioMart, Flipkart and Amazon. Tata Group is planning to invest more than 16 thousand crore rupees in its super app venture. According to people familiar with the matter, the Tata Group is considering infusing $2 billion in fresh capital into its Super App venture to boost the group’s digital business.
super app will help
Tata Digital will get additional funds in two years if this deal goes ahead. According to experts, the capital could help online platform Tata New, which went live last April, strengthen its digital offerings, plug technical gaps and meet any new spending needs. . Tata Group has asked Tata Digital to find ways to increase the valuation of the super app. If experts are to be believed, discussions are going on and the group can still change the size and timing of the deal. Tata Group and Tata Digital have declined to comment for now.
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When was the app launched?
Tata New, India’s first super app since mid-2020, was based on China’s Ali-pay and WeChat, but soon after its launch last year it faced technical glitches and customer complaints. Local heavyweights Reliance Industries Limited and Adani Group have also made up their mind to roll out their own super apps as well. Tata allows new users to buy groceries and gadgets as well as book flight tickets and reserve restaurant seats from all brands under Tata. The app also comes with membership service and also provides financial products like bill payment, loan and insurance.
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How much revenue can be generated
Tata New is expected to achieve only half of the sales target in its initial year. Bloomberg News reported in January that the super app would generate about $4 billion in sales by March 31, compared to a target of $8 billion set for early 2022. The Tata Group acquired firms including e-grocer BigBasket and e-pharmacy 1MG, investing over $2 billion in the last three years to strengthen its e-commerce portfolio.
Source: www.tv9hindi.com
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