Tata Sons has made a significant investment of over $2 billion in the Tata Neu super app, aiming to capitalize on its revamped version, which witnessed a surge in business during the recently concluded Indian Premier League (IPL). In an interview with ET, Pratik Pal, CEO of Tata Digital, shared that the company’s focus now lies on achieving profitability within a three-to-five-year timeframe.
The app, which celebrated its first anniversary on April 7, underwent a complete redesign, along with enhancements in navigation and payment systems. These improvements led to a remarkable growth phase for the app, particularly in terms of revenue, as highlighted by Pal. Having joined as Tata Digital CEO in 2019, Pal brought with him more than 27 years of leadership experience from TCS.
Highlighting the significance of providing seamless consumer experiences, Pal emphasized that it serves as a crucial roadmap for Tata Digital. He stressed the need for their omnichannel experience to be unparalleled, leveraging their assets and consumer touchpoints. Furthermore, they are actively working on expanding their omnichannel platform by introducing new products and categories that go beyond the existing offerings within the Tata universe.
Following its official launch last year, the app encountered various issues such as glitches, subpar user experience, and payment-related concerns, prompting the company to rectify these problems.
Pal revealed that over the past eight months, the team has diligently worked on enhancing the app experience, resulting in a highly rated version (4.2) and aligning all app parameters with industry benchmarks.
Additionally, Tata Digital expanded its consumer offerings by launching multiple financial services. The updated app includes three main categories: electronics, grocery, and e-pharmacy. Subsequently, Air Asia and Indian Hotels joined the platform, followed by Titan, Tanishq, and Westside.
In November, the Tata Neu HDFC card was launched as part of the financial services offering, integrating the loyalty programs of Titan, Tanishq, and Westside into the NeuPass platform. In November, Tata Neu introduced the Tata Neu HDFC card, which incorporated the loyalty programs of Titan, Tanishq, and Westside into the NeuPass.
The app also facilitates United Payments Interface transactions, and bill payments, and provides access to loans and insurance. Pal expressed the company’s intention to broaden its offerings and explore new horizons by combining similar products within the app.
For instance, Tata Digital is considering integrating 1mg, fitness services, and insurance into a subscription model. This comprehensive approach would enable users to access health services, insurance coverage, fitness programs, and medications within a single app.
Pal elucidated that they possess a collection of assets that they seamlessly integrate for the benefit of the consumer. He further exemplified the concept by mentioning weddings, where a significant portion (70%-80%) of the requirements could be fulfilled through various Tata brands like Tanishq, Indian Hotels, Air India, Vistara, and Westside, all seamlessly integrated into the app, providing a convenient one-stop solution.
Pal also mentioned the company’s interest in venturing into niche categories such as adventure travel while continuously expanding the range of offerings. Furthermore, Tata Digital aims to constantly innovate and prioritize the customer experience.
With a strong emphasis on delivering seamless omnichannel services, the company intends to leverage its assets and consumer touchpoints to provide unparalleled convenience and choice.
In conclusion, Tata Digital’s investment in the Tata Neu super app, coupled with its significant revamp, has positioned the company for substantial growth.
With a focus on achieving profitability within a three-to-five-year timeframe, Tata Digital aims to deliver exceptional consumer experiences through its omnichannel platform, offering a wide range of products and services. By leveraging the strengths of various Tata brands and integrating them into a cohesive solution, the app strives to become a comprehensive destination for consumers’ needs and preferences.