Tata Neu Jumps Into Stock Brokering Service; Will Challenge Zerodha, Groww’s Dominance!

Tata Neu, Tata Group’s attempt at a super app is eyeing Zerodha, Upstox and Groww to start offering competition in the space of stock broking services soon.

Tata Neu Jumps Into Stock Brokering Service; Will Challenge Zerodha, Groww's Dominance!


SEBI Application under process

Tata Fintech seems to be the backend entity for the stock broking service.

It has sought approval from the market regulator Securities and Exchange Board of India (SEBI), in particular a stock broking license which currently shows “under process”.

Tata Fintech is a financial entity set up by Tata Digital in November 2021.

It’s currently responsible for developing a digital financial services platform.

Why Zerodha and the like?

The board of directors consists of CureFit co-founder Mukesh Bansal, former i-banker Ankur Verma, and Tata Digital financial services chief executive Modan Saha.

About its latest venture, some context is important. 

During 2020 and 2021, many people with disposable income and limited investment opportunities turned to platforms such as Zerodha, Upstox, IndMoney, Groww, Smallcase et al to make and manage their investments.

Another addition to crowded app

For Tata Neu, existing users who are already on the Neu app will be the first target obviously.

Ironically, Upstox is backed by Ratan Tata, who has backed over a dozen startups such as Snapdeal, Urban Company, Lenskart and CashKaro among others.

Meanwhile, the supposed “super app” was launched in April providing groceries (via BigBasket), luxury goods, travel, health diagnosis and medicine delivery (through Tata 1mg) alongside financial offerings such as UPI, bill payments, loans, and insurance.

The addition of a stock broking service should make it a more attractive proposition for users, already sitting with nearly 16 million downloads on the Play store.

Struggles in the camp

Challenges are aplenty.

Immediate challenges include poor user experience which includes longer load time and lack of unified cart (order pages) among others.

Chief technology officer (CTO) Sauvik Banerjjee quit in July after a six-year-long stint at the group.

What’s at stake?

Now, online broking requires a higher level of delivery in terms of uptime, predictability, research quality and more.

This could prove to be a massive distraction with its demands if Neu is already struggling to keep up.

Dropping satisfaction numbers is a demotivator and hurtful of the perception of a group built around its technology firm/s like TCS and more.

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