With the acquisition of the sponsorship rights for the Indian Premier League (IPL) in January 2022, Tata Group is eying for an opportunity to commercially launch the all-in-one ‘TataNeu’ app to benefit the e-commerce and online shopping consumers. The app, which includes online grocer BigBasket, is expected to appeal to all the time-constrained consumers, says GlobalData, a leading data and analytics company.

Tata Group has been building capabilities to launch a super app that will combine other online properties of the group such as TataCliq, 1Mg, and BigBasket, and the online business of Croma, the electronics retailing arm of Tata. The app also includes access to Westside, the apparel and accessories business of the Tata Group. In addition, consumers can also book tickets for Air Asia, Taj Group of Hotels, and Vivanta Hotels through the app. Specifically, BigBasket provides an opportunity for cross-selling other products to consumers who visit the app for groceries

Parthasaradhi Reddy, Consumer Analyst at GlobalData, says: “Catalyzed by the COVID-19 pandemic, the Indian ecommerce market will grow strongly by 2025, driven by middle-aged consumers. According to GlobalData’s Q4 2021 consumer survey*, 60% of respondents in the 25–54 years age group are continuing to shop online or are shopping online more frequently for groceries due to COVID-19.

“GlobalData projects that online grocery sales alone will expand at a CAGR of 14.8% over 2020-2025, to reach $4.6bn by 2025, with the confectionery sector forecast to grow at an exponential rate and emerge as the second-largest segment by 2025. With BigBasket, the biggest player in the e-grocery space in its portfolio, TataNeu is well-positioned to capture a chunk of this booming market.”

Parthasaradhi concludes: “Companies are trying to grab a pie of this huge e-commerce opportunity through organic growth, and strategic mergers and acquisitions, while competitors such as Reliance have also acquired a plethora of online properties, Tata Digital will be the first out of the gate with an all-inclusive app, which will provide it with an early mover advantage. The TataNeu app, earlier known as Tata Super App, will be a game changer in the Indian e-commerce context.

“Presently available to Tata Group employees as a beta version, TataNeu is all set for a commercial launch. Among the digital properties being merged onto the super-app, BigBasket, which is majority-owned by Tata Digital, will emerge as the vital cog and become the logistics backbone for the online retailing business of the Tata Group. And to top it all, the IPL sponsorship rights will provide a perfect marketing platform for the app’s commercial launch.”