Tata Group reportedly could inject $2 billion into its digital arm over the next two years, with a large portion of the cash earmarked to address flaws in e-commerce app Tata Neu, which it launched in April 2022.

Bloomberg reported Tata Neu, branded as India’s first superapp, faced complaints from users regarding technical glitches, privacy issues and data leaks.

Tata Neu was a big e-commerce play by the Indian conglomerate to take on Amazon and Flipkart, with the app allowing users to buy products including groceries, devices and flight tickets.

Sources told Bloomberg the fresh investment could help Tata Digital strengthen Tata Neu’s digital offerings, fix technical glitches and meet any new spending needs.

The group is also looking at ways for Tata Digital to boost the valuation of the app through the investment.

It has already spent $2 billion over the past three years to boost its e-commerce offering, acquiring e-grocer Bigbasket and pharmacy app 1mg.

At end-2022, CEO Natarajan Chandrasekaran pledged to set aside $90 billion for investments in the next five years, Nikkei Asia reported.