New Delhi, August 2025 – Tata Capital Phygital Expansion has announced an aggressive expansion of its phygital strategy—combining physical infrastructure with a strong digital ecosystem—to strengthen its reach and customer engagement across India. The move involves a significant increase in branch presence alongside a broad partner network and upgraded digital platforms.
Branch Network Expands to Nearly 1,500 Locations
As of March 31, 2025, Tata Capital Phygital Expansion footprint had grown to 1,496 branches across 1,102 cities and towns in 27 States and Union Territories.
- March 2024: 867 branches
- March 2023: 539 branches
- Growth: More than 175% in two years
This expansion is aimed at increasing accessibility for customers who prefer in-person financial interactions, particularly in semi-urban and rural markets where digital adoption is still developing.
Partner Ecosystem Boosts Market Penetration
In addition to its own branch network, Tata Capital Phygital Expansion leverages a strong network of partners:
- 30,000+ Direct Selling Agents (DSAs)
- 400 Original Equipment Manufacturers (OEMs)
- 8,000 dealers
- 60+ digital sourcing partners
These partnerships help tap into diverse customer segments, expand product distribution, and enhance service delivery across different regions and sectors.
Digital Platforms Strengthen Omnichannel Presence
Tata Capital’s phygital model ensures customers can move between online and offline services seamlessly.
Key digital assets include:
- Official website with self-service tools and product info
- Mobile apps for quick, on-the-go transactions
- 24/7 Interactive Voice Response (IVR) systems
- Partner-integrated onboarding and service platforms
Customers can start a process online and complete it in-branch—or vice versa—without disruption.
Strategic Rationale Behind the Phygital Model
The dual approach balances trust and convenience:
- Bridging accessibility gaps: Physical branches for areas with limited digital literacy; digital services for tech-savvy urban markets.
- Enhancing loyalty: Hybrid model meets diverse preferences, improving satisfaction and retention.
- Strengthening resilience: Multiple service channels allow quick adaptation to market changes.
This aligns with Tata Capital’s vision to be present wherever customers are—online or in person.
Impact on India’s Financial Services Sector
Tata Capital’s growth makes it a trendsetter in the Indian NBFC sector. The approach could encourage other financial institutions to adopt hybrid models, capturing rural and urban growth.
With a gross loan book of ₹2.27 lakh crore (March 2025), this expansion is expected to boost:
- Loan disbursements
- Cross-selling of products (personal loans, business loans, home finance)
Economic Timing Works in Tata Capital’s Favor
India’s economy supports this expansion:
- GDP growth projected at 6.5% in FY 2025
- Rising credit demand in MSMEs, consumer finance, rural development
Tata Capital’s deeper integration into both physical and digital markets positions it to ride this growth wave effectively.
Looking Ahead
Rapid branch growth, a wide partner network, and advanced digital integration represent a decisive move for Tata Capital.
By blending traditional banking with modern technology, the company is strengthening its competitive edge and redefining how NBFCs operate in a dynamic market.
