NEWS DESK: The $ 20 Billion funding spree by India’s Reliance may take the business giant to come closer to its dream of becoming a digital giant. This will threaten the ambitious plans of U.S. based companies like Amazon, Walmart, and Zoom. Stake sales in Reliance’s Jio platforms (digital units of Reliance) not only attracts sovereign wealth funds and private equity but also Facebook and Google.
Reliance’s digital plans, which extend from online shopping and cloud computing to telecom and digital payments is being equated to China’s Alibaba and Tencent.
The Reliance has a track record of distorting rival businesses with cheap smartphones and data plans. In four years, the Jio telecom venture has dethroned market leaders like Vodafone, Idea, and Bharti Airtel to become the largest telecom operator in India.
On Wednesday, Reliance chairman Mukesh Ambani said that Reliance will expand its e-commerce platform JioMart. JioMart connects small retailers with common consumers to offer groceries, electronics, and fashion goods.
Mayank Vishnoi, the Financial Advisory of Singapore based firm Resfeber International stated that’ “Jio platforms not only has the backend infrastructure and development capabilities but also an ever-expanding captive consumer base.” He also said, “The addition of new digital products targeting various sectors will pose threats to many large dominant players. Having strategic partners like Facebook and Google validates that Reliance game plan is real.”
Reliance’s recent stake sales gave them a foreign partner in JioMart. Facebook’s WhatsApp will work closely in connecting small retailers to JioMart. It can be justified that Reliance will face stiff competition from Amazon and Flipkart. Both companies are well established and have proper warehousing and supply chains in the country.
Amazon and Flipkart delivers a wide range of goods across the country, while JioMart currently delivers groceries in only 200 cities.