Tata Group Creates Rs 16,000 Crore Warchest For Tata Neu Ecommerce App: Can They Fix Tech Bugs & User Experience?


Radhika Kajarekar

Radhika Kajarekar

Mar 25, 2023


The Tata Group is considering investing a fresh capital of $2 billion in its super app, the Tata Neu.

Tata Group Creates Rs 16,000 Crore Warchest For Tata Neu Ecommerce App: Can They Fix Tech Bugs & User Experience?

Launched on the 7th of April, Tata Neu is the super app of Tata conglomerate which brings all of the digital services as well as apps on a single platform. 

How will this new investment help Tata Neu? Let’s find out!

Tata Group To Invest $2 Billion In Super App, Tata Neu

If the deal goes through, Tata Digital will probably get the money over a two-year period. The agreement could assist the online platform in expanding its digital offerings, enhancing technical aspects, and satisfying other enhancement needs.

Ever since it went live in April of last year, the app has been plagued by technical issues, which were quickly followed by user complaints.

Additionally, Tata Neu is projected to achieve only 50% of the sales goal in its first year, FY23. In contrast to the $8 billion target set at the start of 2022, the super app is predicted to report sales of around $4 billion, according to a January report by Bloomberg.

The super app’s valuation has been increased at the request of the Tata Group, and new funding may enable Tata Neu, to improve its digital offerings, address technical issues, and take care of any unforeseen spending requirements, according to a Bloomberg report citing sources.

Importantly, if the deal goes through, the additional capital infusion would occur at a good time as Tata Digital reviews its strategy and battles entrenched e-commerce competitors like Amazon.com Inc. and Walmart Inc.’s Flipkart. Additionally, Reliance Industries and Adani Group intend to release their own super apps.

What Does Tata Neu Offer?

The concept of Tata Neu is based on WeChat and Alipay in China. The app offers financial services like bill payment, loans, insurance, and membership service.

The Neu app will make it possible to access all of the different Tata Group services like below:

  • Purchasing AirAsia India or Air India airline tickets
  • Hotel reservation at Taj Group properties
  • Purchasing groceries from BigBasket
  • Purchasing Medicines from 1mg
  • Croma electronics purchases
  • Buying apparel at Westside

Additionally, users who spend money on the app will earn Neu Coins, which can then be redeemed for services offered by the app.


Radhika Kajarekar
Radhika Kajarekar
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