In China, there is WeChat, a superapp that started as a messaging app but has since expanded to include social networking, payments, e-commerce, and government services. With over a billion users, it is hugely popular for combining multiple services into one platform, and ease of use. There’s one in Indonesia too, Gojek. This super app started as a motorcycle ride-hailing service and has since grown to offer multiple apps in one, including food delivery, parcel delivery, movie ticketing, and grocery delivery.
In India, the Tata Group launched the country’s first superapp, Tata Neu, in April 2022, by combining the Group’s consumer brands into one platform. Soon after, players like Paytm, Reliance’s Jio Platforms, Amazon, Flipkart and PhonePe joined the bandwagon. India’s superapp interest levels were driven by high smartphone penetration, affordable data, digital payments infrastructure, and the need for convenience in a vast, diverse market.
However, the trend failed to take off. Market saturation in India’s growing digital ecosystem, the presence of specialised apps for shopping, travel, payments, and more, and consumer fears that super apps might push the user to purchase products or services that they may not need, are cited as some of the reasons for their limited success here.
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“Super apps are common in China and Indonesia. Indian superapp providers felt that the same success story is replicable here, as it happens often in all tech-based offerings, where success of a market offering in one country, especially in the tech space, automatically makes the provider of the market offering presume that the offering can scale geographically,” said DVR Seshadri, professor of marketing (practice), Indian School of Business (ISB).
Unlike China, where WeChat was a first-mover, India already had specialised apps for shopping, travel, payments, and other services, according to Ajai Chowdhry, co-founder, HCL. “Players like Uber, Ola, Google Pay, PhonePe, Amazon, and Flipkart dominate specialised services, leaving little room for new superapps to differentiate,” he said.
Also, users were hesitant to switch, especially since most superapps struggled with performance issues, leading to overcrowded interfaces. Chowdhry said, “Tata Neu’s launch was criticised for technical glitches, while Paytm’s superapp aspirations didn’t fully resonate beyond payments. Privacy concerns also limited consumer interest.”
“It’s not really market saturation, it is the established space that market pioneers have captured in the minds of consumers,” explained Ganesh Natarajan, chairman of 5F World and Honeywell Automation India. According to him, customers have got used to payments and transfers through GPay or Paytm, hailing ride shares through Uber, Ola and similar “best-of-breed” services.
According to him, a smartphone user has no problem in having a screen full of dozen apps which they have developed a sense of comfort with. In this comfort zone, suddenly comes a big brand who wants to entice them into a walled garden.
“The consumer has no idea what is the commission the service provider has to pay to be part of the walled garden and does not trust rebranded services as competition to their familiar set. Hence, even the biggest brands are meeting their waterloo when they try to put too many products and services into superapps,” Natarajan said.
According to Seshadri, there is a fear that these superapps might push the user to purchase products that they may not need. “By and large, Indians are frugal and desist being conned into buying products or services they may not need, especially in the backdrop of widespread scams that happen through the vehicle of the mobile phone. I believe super apps are not likely to succeed in India, either as broad-based or niche super apps,” he added.
Chowdhry, however, is optimistic. “India’s superapp future may lean towards niche-focused apps, addressing specific needs. Tailoring to user preferences and simplifying services could drive adoption more effectively than broad, all-encompassing platforms,” he summarised.
QUOTES
DVR Seshadri, professor of marketing, ISB
Superapps are common in China and Indonesia. Indian superapp providers felt that the same success story is replicable here.
Ajai Chowdhry, co-founder, HCL
Unlike China, where wechat was a first-mover India already had specialised apps for shopping, travel, payments, and more.
Ganesh Natarajan, chairman, GTT group, 5F world
Some of the biggest brands are meeting their waterloo when they try to put too many products & services into superapps.