AgenciesTata Digital has set up a digital financial entity, Tata Fintech, which is expected to function as a financial marketplace offering multiple financial products and a new retail payments gateway to its consumers under a single roof, people aware of the development said.
Incorporated in November 2021, Tata Fintech seems to be parallelly building a financial services portfolio and hiring senior talent from digital and financial backgrounds.
Its board of directors includes Myntra and CureFit cofounder and Tata Digital President Mukesh Bansal, former investment banker Ankur Verma, and Modan Saha, CEO-financial services at Tata Digital. Group companies Tata Capital, which has its own digital arm, and Tata Consultancy Services are helping the new entity with products and technology, the sources said.
Officials close to Tata Capital told ET that the finance and investment service provider is working with Tata Digital to build a digital financial services platform.
“Tata Fintech does not yet have an NBFC licence,” one of them said. “So the entity will focus on payments and other products. But there is reasonably good coordination between the two entities.”
Tata Digital and Tata Capital did not comment.
The new entity is expected to help Tata Group compete with heavyweight rivals such as Amazon and Reliance in the financial marketplace.
According to a person aware of the matter, the fintech vertical is a natural extension to the broader ecommerce business from the Mumbai-based conglomerate.
“There are a lot of integrations being planned in terms of offering buy-now-pay-later solutions and other financing options,” the person said. “These are being worked out through the fintech unit.”
Tata Group, which has been actively pursuing a licence for its consumer super app TataNeu, has plans for enabling financial solutions for merchants and suppliers as well. The super app from Tata Digital is currently being pilot-tested among Tata Group’s 200,000-plus employee base. It connects several brands across the Tata universe to offer daily grocery, electronics, finance solutions, flights, holidays, etc.
Each brand on TataNeu is connected by a common reward called NeuCoins, which can be earned across all brands online and at physical locations from AirAsia India, Bigbasket, Croma, Tata CLiQ, IHCL, and Westside.
“Right now, most of the testing is around getting the core consumer brands’ integrations right, focusing on logistics, but there would be more playing out on the lending side of it in the coming months,” said one of the persons cited earlier. “The company has been hiring executives across levels for the same.”
Gaurav Hazrati, head financial services at Tata Digital, also sits on the board of Tata Fintech.
The entity’s services may include services such as credit card applications, insurance distribution, micro loans and even merchant management.
Incorporated in November 2021, Tata Fintech seems to be parallelly building a financial services portfolio and hiring senior talent from digital and financial backgrounds.
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Officials close to Tata Capital told ET that the finance and investment service provider is working with Tata Digital to build a digital financial services platform.
“Tata Fintech does not yet have an NBFC licence,” one of them said. “So the entity will focus on payments and other products. But there is reasonably good coordination between the two entities.”
Tata Digital and Tata Capital did not comment.
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The new entity is expected to help Tata Group compete with heavyweight rivals such as Amazon and Reliance in the financial marketplace.
According to a person aware of the matter, the fintech vertical is a natural extension to the broader ecommerce business from the Mumbai-based conglomerate.
“There are a lot of integrations being planned in terms of offering buy-now-pay-later solutions and other financing options,” the person said. “These are being worked out through the fintech unit.”
Tata Group, which has been actively pursuing a licence for its consumer super app TataNeu, has plans for enabling financial solutions for merchants and suppliers as well. The super app from Tata Digital is currently being pilot-tested among Tata Group’s 200,000-plus employee base. It connects several brands across the Tata universe to offer daily grocery, electronics, finance solutions, flights, holidays, etc.
Each brand on TataNeu is connected by a common reward called NeuCoins, which can be earned across all brands online and at physical locations from AirAsia India, Bigbasket, Croma, Tata CLiQ, IHCL, and Westside.
“Right now, most of the testing is around getting the core consumer brands’ integrations right, focusing on logistics, but there would be more playing out on the lending side of it in the coming months,” said one of the persons cited earlier. “The company has been hiring executives across levels for the same.”
Gaurav Hazrati, head financial services at Tata Digital, also sits on the board of Tata Fintech.
The entity’s services may include services such as credit card applications, insurance distribution, micro loans and even merchant management.
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