Tata Neu is preparing to Compete with Groww and Zerodha in the Wealthtech Arena Soon

Tata Digital, the digital arm of the Tata Group, is gearing up to enter the wealth space and compete with investment tech platforms like Zerodha and Groww. 


According to sources, Tata Digital plans to launch stock trading and mutual fund investment offerings on its super app, Tata Neu, within two to three months under its financial services arm, Tata Fintech Private Ltd.


The development comes after Tata Digital acquired a stock broking license in September 2022.


The company has been working on launching these offerings for the past year, with plans to strengthen other verticals on the Neu app before venturing into the investment tech space.


The new offerings are expected to be part of Tata Fintech’s expansion strategy.


Tata Digital’s current fintech offerings on Tata Neu include:

  • Co-branded credit cards (Tata Neucard).
  • BNPL options (Tata Pay Later).
  • Digital gold investments.
  • Personal loans in partnership with various banks and NBFCs.

The company has also focused on addressing app glitches and enhancing customer experience before entering the investment tech sector.


The move places Tata Digital in direct competition with discount brokerages like Zerodha and Groww, which currently hold nearly 40% of the market share by user base in the stock broking industry.


The wealthtech entry by Tata Digital follows the recent joint venture between Reliance-owned Jio Financial Services and investment giant BlackRock to enter the asset management space.


Tata Digital’s fintech arm has been actively hiring product and content management teams, aiming to strengthen its educational initiative for wealth management.


Gaurav Hazrati, a banking and fintech veteran with experience at Axis Bank and IndusInd Bank, leads the fintech vertical.


Analysts suggest that Tata Group’s established position in financial services, including NBFC Tata Capital and mutual fund Tata Digital India Fund, positions it well to enter the wealthtech sector.


However, the success of Tata’s foray into wealthtech will depend on its strategy to attract the growing investor user base in India, especially against established players like Zerodha and Groww.


The wealthtech sector in India is expected to grow at a compound annual growth rate (CAGR) of 30% between 2022 and 2030, reaching a market size of $74 billion. It remains to be seen how Tata Digital will differentiate itself and compete in this dynamic and rapidly evolving space.