According to a report on Thursday, Tata Group is considering investing $2 billion in Tata Digital in order to grow its digital company.

If a deal goes through, Tata Digital Pvt. will receive the additional funding over two years, according to Bloomberg. This might benefit the conglomerate's super-app Tata Neo in several ways.

According to sources cited by Bloomberg, Tata Group has instructed Tata Digital to look for ways to increase the super app's valuation.

Tata Neu, which was designed after Alipay and WeChat in China, launched last year but rapidly encountered technical issues and client complaints. Adani Group and Reliance Industries Ltd. intend to release their own super applications as well.

In an effort to make a stronger impact in the rapidly expanding Indian e-commerce market, the conglomerate released the Tata Neu app in April 2022. It unites numerous companies within the group on a single platform and offers services for booking everything from hotels to airline tickets to groceries.

Tata Group invested more than $2 billion in the last three years to buy businesses like e-pharmacy 1mg and e-grocer Bigbasket to strengthen its e-commerce portfolio.

In comparison to the $8 billion aim established at the start of 2022, the super app will witness revenues of approximately $4 billion in the year to March 31, according to a January report from Bloomberg News.

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