Tata Group is considering investing an additional $2 billion in its super app project as the salt-to-software giant looks to strengthen its digital operations, sources said. Tata Digital Pvt. will receive the additional funding over two years should a deal proceed, the people said. The fresh capital could help online platform Tata Neu, which went live last April, to strengthen its digital offerings, fix technical glitches and meet any new spending needs, one of the people said.
The sources claimed that Tata Group had urged Tata Digital to seek ways to increase the valuation of the super app. The conglomerate may yet alter the size and timing of a deal, according to the sources, who said discussions are still in progress.
Any further funding would come at a time when Tata Digital is reevaluating its strategy and battling established e-commerce competitors like Amazon.com Inc. and Walmart Inc.'s Flipkart. Modelled after China's ubiquitous Alipay and WeChat, Tata Neu was India's first super app since at least mid-2020 but rapidly encountered technical issues and user concerns.