Tata Digital is now planning to buy a stake in Just Dial, the online searching platform for local businesses. This looks like a strategic alliance with the company.
This is a part of the Tata Group’s plan to enter the e-commerce space.
Read on to find out more about Tata Group’s plans right here!
Tata Digital To Buy A Stake In Just Dial; First Round Of Discussion Already In Proccess
Several sources have confirmed that Tata Digital’s deal with Just Dial has already begun, with an initial round of conversations taking place. However, the final outcome of the discussion is not out yet.
A senior Tata official who is close to the development has said, “Both sides have met for discussions, but it is too early to say anything has been finalised. A lot also depends on how things evolve between the two parties.”
As per reports, the mergers and acquisitions teams of Tata Sons have been creating a list of possible partnerships that will be closed in order to offer Tata Digital the big scaleup and the reach that is needed in the online consumer space.
In October 2020, Just Dial had announced the plans to launch its own B2B (business to business) market place, which will be called JD Mart. The company already has a strong foothold in the market and a loyal customer base as well.
Is This A Part Of ‘Super App’ Expansion?
Tata Digital has also conducted discussions with multiple partners and are in the process of finalizing the Super App. This app will offer consumers many services and products under a single platform. There is a possibility that this merger is being conducted to expand the Super App.
The company will also be able to leverage the 140 million quarterly unique users and 100,000 paid B2B subscribers to sell JD mart, as revealed by a report by financial services firm UBS.
Tata Group has also been said to be in talks with IndiaMart as well in the recent past. However, these reports were declined by the company.
Tata Digital is in the process of creating verticals for several services that includes grocery, pharmacy, dairy, lifestyle, education, medical consultation, beauty, logistics, consumer finance, insurance, and payment options. Additionally, some other consumer facing online units, will also be incorporated into Tata Digital, such as Tata Cliq, Tata Health App, Tata Class Edge, which is about educational services, and ready-to-eat business Tata Q