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In celebration of its one-year anniversary on April 7, the app received a new look, improved navigation, and improved payment processes, resulting in its strongest growth period.
According to Tata Digital CEO Pratik Pal, Tata Sons invested more than $2 billion in Tata Neu, a mega app that has enjoyed a surge in sales since being redesigned for the Indian Premier League (IPL). According to him, the company should be profitable within three to five years.
After celebrating its one-year anniversary on April 7, the app received a new look, improved navigation, and improved payment mechanisms, leading to its strongest growth period on all counts, including revenue, according to Pal, who became Tata Digital’s CEO in 2019. In his previous position, he served in significant executive capacities at Tata Consultancy Services (TCS) for over 27 years.
In Pal’s first interview as Tata Digital CEO, he said the app had on-screen visibility for over one million seconds and a campaign reach of 110 million with 13 million installations and 75 million visits during the IPL. NeuPass has 75 million members and 60 million installations. Nearly 60% of our clients are repeat customers, and multi-category customers have increased from less than 10% to more than 25% over the last year.”
Currently, Tata Digital, Tata Sons’ wholly-owned e-commerce company, is working to provide a broader variety of items, including some in which the Tata Group may not be active.
In his opinion, end-to-end consumer experiences are important, and that is a big part of our roadmap. In light of our assets and consumer touchpoints, we must offer the best omnichannel experience. In order to provide consumers with more options, we are developing a strategy to expand our omnichannel platform and introduce new products and categories to the Tata universe.”
Immediately following the formal debut last year, the company had to address complaints about problems, poor user experience, and payment issues.
The app experience has improved over the last eight months… and several financial services have been launched as well. “With a rating of 4.2, consumers are responding positively to the new version, and all app parameters are currently at the same level with industry benchmarks.” We… have created a roadmap for customer experience innovation.”
In the beginning, the app offered three primary categories: electronics, groceries, and e-pharmacy. Air Asia and Indian Hotels followed, along with Titan, Tanishq, and Westside. As for financial services, Tata Neu HDFC was introduced in November, combining Titan, Tanishq, and Westside reward programs into the NeuPass reward program. Apart from loans and insurance, the app supports bill payments and United Payments Interface (UPI) transactions.
In order to weave similar products together, we are looking to broaden our offerings and horizons, Pal said.
One of the plans is to incorporate 1mg, fitness, and insurance into a subscription model. This will provide consumers with health, insurance, fitness, and medication in one app.
As an example, 70-80% of wedding needs are met by Tata brands Tanishq, Indian Hotels, flights (Air India, Vistara), and apparel (Westside), which the super app connects as a one-stop solution.
Keeping profitability in mind, Tata Digital is considering future funding options.
He stated, “Our goal is profitable revenue within three to five years. We are constantly evaluating fund-raising options.”
Tata Digital is in talks with global luxury brands about selling their products directly through Tata Cliq, Pal revealed. Due to its direct competition with Reliance Group’s premium app, Ajio Luxe, Pal declined to discuss inventory issues in the category. Tata Cliq’s luxury needs are presently sourced from Reliance Group’s Major Brands.
In addition, Major Brands and Tata Cliq have a very good relationship, so there are no such issues. Besides constantly looking for new brands, Tata Cliq is also reviewing its brand portfolio. Thanks to IHCL and Tanishq, we have a great cohort of premium consumers, and we are working hard to expand our luxury category.”
Tata Digital’s loss increased to 3,051 crore in FY22 from 536 crore in FY21. Total operating revenues increased to 15,979 crore from 5,315 crore.
Is Tata Neu a fantastic app? Yes, Pal confirms.
He explained that a super app has no particular definition. “A super app assists a consumer with UPI transactions, pays bills, buys electronics, or groceries.” “Fantastic apps fulfill 50% of their users’ needs on a daily, monthly, or annual basis.” At the moment, we’re working on expanding the options available to consumers through this app.”
Tata Digital has a startup mindset, but with a beautiful mix of a startup company and Tata Group governance standards.
Tata Digital has built a strong executive team that is focused on delivering results.
TCS has taught me resilience and to take calculated risks mindfully,” he said. “We are building a lean, agile company that prioritizes organic and recurring growth.”
