Adani Group, one of India’s largest conglomerates, is making strategic moves to enter the e-commerce and digital payments space. Seeking to diversify its portfolio and compete with industry giants like Reliance, Amazon, and Flipkart, Adani Group plans to apply for a license to operate on India’s Unified Payments Interface (UPI). UPI is a public digital payments network that has gained popularity as the preferred method of online transactions in India.
In addition to UPI, Adani Group is finalizing plans for a co-branded credit card with banks. This move not only allows Adani Group to tap into the growing credit card market but also creates opportunities for collaboration with financial institutions. These efforts showcase the group’s intent to establish a strong presence in the digital payments sector.
Interestingly, this isn’t Adani Group’s first foray into digital offerings. In 2022, the conglomerate launched Adani One, a consumer app through which it sells travel tickets. This move indicates Adani Group’s willingness to explore and experiment with digital platforms to enhance its customer experience.
Furthermore, Adani Group has expressed interest in collaborating with Uber. During Uber CEO Dara Khosrowshahi’s visit to India, Gautam Adani, the group’s chief executive, hinted at potential future collaborations with the ride-hailing giant. Such partnerships could further strengthen Adani Group’s position in the digital space and provide additional value to its customers.
As part of its e-commerce plans, Adani Group intends to leverage the government-backed Open Network for Digital Commerce (ONDC) platform. Through this platform, Adani Group aims to offer online shopping services to its customers. By utilizing ONDC, the conglomerate can tap into a robust network and benefit from the platform’s infrastructure and reach.
Adani Group’s e-commerce and mobile payments services will be accessible through Adani One, its existing consumer app. Leveraging its extensive customer base, which reportedly consists of hundreds of millions of users, Adani Group plans to market its new products to its loyal customer base. This approach allows the conglomerate to capitalize on its existing market presence and customer relationships.
However, Adani Group’s entry into the digital space comes on the heels of a challenging period. The conglomerate faced allegations of market manipulation and fraud by the U.S. short seller Hindenburg Research, leading to a significant decline in its listed stocks. Adani Group firmly denied any wrongdoing, but the incident highlights the potential hurdles and scrutiny companies face when venturing into new sectors.
Despite the challenges, Adani Group’s move into e-commerce and digital payments demonstrates its commitment to adapt and thrive in a rapidly evolving business landscape. By diversifying its portfolio and leveraging digital platforms, Adani Group aims to position itself as a formidable competitor in India’s competitive e-commerce and digital payments market.