E-Commerce In India is Heating up with JioMart Growth
Jio Platforms, a subsidiary of Reliance Industries, has been in the news quite a bit as it continues to raise funding from companies such as Facebook, the famed financial firm KKR, and other notable firms.
They each want a part of Jio Platforms for different reasons, but they are all investing over $500 million to have a stake in Jio Platforms. Facebook invested over $5 billion, and Silver Lake invested at least $700 million, Vista Equity, and General Atlantic joined investing over 2 billion collectively.
This investment spree begs the question, what is Jio Platforms, and why does everyone want to be involved in the technology firm?
What is Jio Platforms?
Jio Platforms is a digital services powerhouse based in India and backed by one of the most prominent firms in India, Reliance. According to Fortune, Jio would come about with Mukesh Ambani, the leader of Reliance, taking a significant stake in Infotel, an Indian Internet service provider.
He saw value in the firm because Infotel spent a considerable sum to have coverage throughout India. Reliance would now have a substantial stake in the telecom industry. This purchase would lay the groundwork for what would be Jio Platforms in the future.
The company would become a leader in India’s telecommunications industry, blazing a trail in the rise of mobile use. Reliance would continue to invest heavily in the telecom industry by allocating over $30 billion to implement a 4G network across India.
Why did this matter?
This move meant that more people would be able to connect, go online, and do so in a more cost-effective manner. It drew consumer attention and would see gradual growth in its consumer base. Reliance saw at least $87 billion in revenues in 2019.
Jio Platforms started with the base layer and foundation of bringing about an affordable telecommunications service. It would then expand to building applications on top of this fundamental service.
These applications are the growth story.
What Applications are Present in Jio Platforms?
The firm has Jio Mart, an e-commerce grocery store. Online education, its unique digital asset, distribution of internet-connected Jio phones, and other digital initiatives.
Facebook and other firms see that Reliance’s Jio is one entity that has a substantial position in the Indian telecommunications sector while also having a hand in cell phone sales and applications.
Investors are getting a 3 for 1 deal when buying Jio Platforms. You are getting exposure to an emerging market, to people going online, staying online, and spending online. Also, buying Jio Platforms is like buying Google or Amazon early on.
As Zoom and other companies have shown, all of these applications could be different companies, but they all fall under the Jio Platforms umbrella.
JioMart is one of the leading applications that will now be present in more than 200 Indian cities. JioMart should make it easier for local shops (Karana shops) to connect with their neighborhoods and sell easily. JioMart supports communication between shops and consumers and the delivery of goods.
Reliance and Jio are taking the right steps to create long term value in the Indian telecommunications industry and future applications.