Can the Tata Neu app be India’s ‘Everything Store’?

Can the Tata Neu app be India’s ‘Everything Store’?

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Sohini Mitter

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Sohini Mitter

10 reads

Tata Neu may have finally put its glitchy start in 2022 behind, riding on some structural changes, co-branded credit cards, and an aggressive IPL marketing effort. Here’s what’s brewing at the platform that claims to be India’s first true super app.

June 19, 2023

13 MINS READ

Key Takeaways

  • Tata Neu recorded a 32% spike in monthly active users since the start of the cricket season in April 2023
  • It has issued over 500,000 co-branded credit cards with HDFC Bank, which has been instrumental in this uptick
  • Tata Digital believes its super app already services 50% of consumers' daily needs. Mobility services and embedded finance products will soon be added to Tata Neu, according to people in the know
  • 75 million users have signed up for Tata Neu’s membership programme (NeuPass), which consolidates all of Tata brands’ loyalty programmes

When Tata Neu launched in April 2022, it hoped to herald a new dawn on two fronts. First, a digital coming of age for the 154-year-old Tata Group’s consumer-facing brands. And perhaps, more ambitiously, the advent of India’s first super app—something Indian startups have long contemplated but never quite pulled off.

Tata was quietly confident about Neu’s chances, having tested the app privately among its employees before the public rollout. At launch, the app offered a handful of Tata brands: online grocer BigBasket, electronics retailer Croma, fashion commerce platform Tata CliQ, e-pharmacy 1MG, coffee chain Starbucks, and the conglomerate’s budget airline AirAsia. Users could sign up for a free NeuPass (Tata Neu’s in-app membership programme) and earn NeuCoins (loyalty points valued at Rs 1 each) on every purchase.

The initial signs were promising. Neu recorded 2.2 million sign-ups in its first week, and the app even trended on Twitter. All the buzz, however, quickly turned to criticism. App crashes, failed transactions, backend glitches, and a confusing rewards mechanism led to mounting consumer disappointment. Perhaps burdened by the weight of its own promises, Tata Neu failed to take flight.

Indeed, data from app intelligence firm Sensor Tower, sourced exclusively by The CapTable, indicates that Tata Neu had seen a 60% drop in users a year on from its launch. In the same period, its e-commerce rivals all boasted positive growth—Amazon India (​​+9% ), Flipkart (+22%) and JioMart (+25%).

April 2023, however, would mark a turning point for the beleaguered super app. Tata Neu’s aggressive advertising during the 16th edition of the Indian Premier League (IPL) paid rich dividends.

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