tata news: Tata Digital creates a financial marketplace entity

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Tata Digital has set up a digital financial entity, Tata Fintech, which is expected to operate as a financial marketplace offering multiple financial products and a new retail payment gateway to its consumers under one roof, people familiar with the news said. development.

Founded in November 2021, Tata Fintech seems to be building a portfolio of financial services at the same time and hiring senior talents from digital and finance.

Its board of directors includes Myntra and CureFit co-founder and Tata Digital chairman Mukesh Bansal, former investment banker Ankur Verma and Modan Saha, CEO of 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 technologies, the sources said.

Officials close to Tata Capital told ET that the finance and investment services provider is working with Tata Digital to create a digital financial services platform.

“Tata Fintech does not yet have an NBFC license,” said one. “The entity will therefore focus on payments and other products. But there is a fairly 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 the Tata group to compete with major rivals such as Amazon and Reliance in the financial market.

According to a person familiar with the issue, the fintech vertical is a natural extension of the Mumbai-based conglomerate’s larger e-commerce business.

“There are a lot of integrations planned in terms of offering Buy It Now and Pay Later solutions and other financing options,” the person said. “These are developed by the fintech unit. ”

The Tata Group, which is actively seeking a license for its consumer super app TataNeu, is also considering implementing financial solutions for merchants and vendors. Tata Digital’s super app is currently being pilot tested with more than 200,000 Tata Group employees. It connects multiple brands across the Tata universe to offer daily groceries, electronics, financial solutions, flights, vacations, and more.

Each brand on TataNeu is linked by a common reward called NeuCoins, which can be earned on all brands online and in physical locations of AirAsia India, Bigbasket, Croma, Tata CLiQ, IHCL and Westside.

“Right now, most of the testing is on the proper integration of major consumer brands, focusing on logistics, but there would be more to play on the lending side in the coming months,” he said. said one of the people quoted earlier. “The company hired executives at all levels for the same.”

Gaurav Hazrati, Head of Financial Services at Tata Digital, also sits on the Board of Directors of Tata Fintech.

Entity services can include services such as credit card applications, insurance distribution, microcredit, and even merchant management.

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