CIO Insider

CIOInsider India Magazine

Separator

Tata Sons to Raise $ 2.5 Billion for its Super App and Digital Business

Separator

Tata Sons is looking for investors to help fund the development of its super app and the expansion of its digital business. The company has approached global investors to raise an estimated $2-2.5 billion for its digital business. The business is gearing up for a September trial launch of its super app in Bangalore.

According to a report in The Economic Times, N Chandrasekaran, Chairman, Tata Sons met with various investors during his recent trip to the US in May to promote the company's new initiative. PE funds are likely to be sought in the early stages, followed by strategic investors as the company grows.

To compete with Amazon, Flipkart, and Reliance's JioMart, Tata wants to expand the company's digital footprint across all businesses.

The company is developing a super app that will serve as a one-stop shop for ecommerce, financial services, health, lifestyle, and fashion, among others. According to the daily, the app is likely to award loyalty points for use, which can then be used to book a Vistara flight or a stay at a Taj resort.

The company has bought some of the most well-known names, including online grocer BigBasket and online pharmacy startup 1mg, for Tata's super app. In addition, the company will combine several of the group's current digital companies, such as Tata Cliq.

He further added that Tata Digital has an ambition to build the next general consumer platform that is inspiring. The relationship is a powerful affirmation of CureFit's category leadership, according to Sudhir Sethi, Chairman Chirate Ventures, and will help the company develop swiftly as digital health takes off in a large way in the coming decade.

One of the major members of the fundraising team is Mukesh Bansal, the co-founder of fitness firm Curefit who recently joined Tata Digital as president. Bansal used to work for Myntra before joining Curefit. He became Flipkart's head of commerce when Myntra was acquired by the company in 2014.

He further added that Tata Digital has an ambition to build the next general consumer platform that is inspiring. The relationship is a powerful affirmation of CureFit's category leadership, according to Sudhir Sethi, Chairman Chirate Ventures, and will help the company develop swiftly as digital health takes off in a large way in the coming decade.

The relationship with CureFit, according to N Chandrasekaran, fits in nicely with the company's broader healthcare offering, as exercise is rapidly becoming a part of a customer's life. Being a part of Tata Digital. Bansal said this would "allow us to nationalize our products for our clients".

The Indian fitness and wellness market is estimated to reach $12 billion by 2025, expanding at a rate of 20 percent per year. Tata Digital's latest investment comes just a month after Tata Sons bought a majority share in online grocery retailer BigBasket through Tata Digital. It bought a 64 percent share in Supermarket Grocery Supplies, the online grocer's Business - to - business division.

The Tata Group also intends to combine the strengths of its fashion retail businesses Trent and Infinity Retail. Tata Electronics, the group's electronics division, has also joined the market. In Chennai, the newly founded company intends to manufacture high-end technology products.

Current Issue
TheDataTeam: Presenting Cadenz - An AI-Powered Enterprise CDP