Tata Sons may sell a minority stake in TDPL: Report

To raise an amount of around $ 1 billion from global private equity funds, Tata Sons is planning to sell a minority stake in its subsidiary, Tata Digital Pvt. Ltd (TDPL), as per report. Tata Neu super app which serves as a consolidated e-commerce platform under the brand name 'Tata Neu' operates under TDPL.

The platform enables customers to connect with various businesses operated by Tata companies.

As per report, the discussion regarding the stake sale is at an informal level with a few well-known private equity funds.    

However, it is expected that a formal process will commence in the near future. Once the valuation exercise is completed and a tentative list of investors is finalised, a proposal will be presented to the company board for further consideration. It is anticipated that a deal will be executed before March of this year, as long as everything progresses as planned.

Tata Neu, launched in April 2022, is modeled on China’s ubiquitous Alipay and WeChat. A super app can be described as a mobile or web application that combines multiple services into one platform. Through this app the users can buy groceries and gadgets as well as reserve airplane tickets and restaurants from brands controlled by the Tata group.

In addition to the Tata Neu digital platform, consumer brands such as Croma, as well as loyalty programmes of various brands and digital payment services such as Big Basket, Croma, IHCL, Starbucks, Westside, Vistara and Tata Cliq, are also under the TDPL brand.

The app also offers membership services and financial products such as bill payments, loans and insurance.