Tata Group’s work on its digital platform is in full swing – the company is now in discussion with Microsoft Corporation; the latter is to come on board as an anchor investor for this digital platform.
One or two strategic investors will be included and a fundraising drive will be launched on a huge scale.
Tata To Get Microsoft’s Funding For Super App?
Tata Group will be combining digital assets across various businesses under a new entity, therefore modernising the already diverse business of the cars to coffee conglomerate. Additionally, another reason behind this is the entry of Amazon and Reliance Industries in India’s e-commerce market.
As confirmed by some inside sources, the Chairman of Tata Sons, N Chandrasekaran plans to compete against the Reliance Jio playbook, raising Rs 1.45 lakh crore ($20 billion) from investors last year, with Facebook (Meta Platforms Inc.) and Google (Alphabet Inc.) acting as strategic equity partners for the telco.
Tata’s platform is a super app called Neu, which will act as an ecommerce gateway for consumer products and services, which include appliances, groceries, medicines, resorts and jewellery.
Tata To Finalize Anchor Investors By Next Year
As per sources close to the development, Tata plans to finalise anchor investors by the beginning of next year. There also is a possibility that the discussions with Microsoft may not materialize to a transaction.
An executive said, “The challenge for a new investor is the proof of concept. Jio had a product which was up and running. In Tata’s case, all the different pieces are yet to fall in place. Where is the super app?”
Some funds that have been tapped by Chandrasekaran are from Middle East, and may be common with the Jio cao table and may invest from other arms similar to the capital raising done by Flipkart recently.
As per previous reports, the company has completed developing its superapp called the ‘Tata Digital’s SuperApp’ and announced to get it evaluated by its over 700,000 employees to ensure its efficiency, prior to the SuperApp’s official launch.
All of Tata Group’s different companies will be listed on the SuperApp and the company’s wide customer base will be able to access all of them at a single platform.
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