The Adani Group, a prominent conglomerate, is reportedly venturing into the e-commerce and payments space to establish a digital company that could rival industry giants like Google and Reliance Industries in India. Sources cited by the Financial Times (FT) indicate that the company is in discussions to expand its digital footprint and tap into the country’s burgeoning consumer technology market.
One of the key strategies being considered by the Adani Group is to secure a license to operate on the Unified Payments Interface (UPI), a widely used public digital payments network in India. Additionally, the conglomerate is in talks with banks to finalize plans for a co-branded Adani credit card, as reported by FT sources.
Furthermore, the Adani Group is exploring opportunities to offer online shopping through the Open Network for Digital Commerce (ONDC), India’s rapidly expanding public e-commerce network supported by the government. Leveraging India’s digital public infrastructure “stack,” which includes ONDC and UPI, the Adani Group aims to attract millions of consumers and establish a strong presence in the digital marketplace.
If approved, these services will be accessible through Adani One, the company’s consumer app launched in late 2022, which currently provides travel-related services such as hotel and flight reservations. The company’s e-commerce and payments offerings are expected to initially target its extensive clientele, including travelers using Adani’s airports and customers of its gas and electricity services.
According to sources familiar with the matter, the Adani Group plans to offer loyalty points to users for bill payments or duty-free purchases, which can be redeemed for online shopping. This strategic approach aims to leverage the existing user base to expand into broader consumer markets, as highlighted in the FT report. Additionally, there are discussions about integrating NDTV content into the Adani app in the near future.
The move into e-commerce and payments comes as Gautam Adani, the group’s founder, seeks to diversify and expand the company’s presence in consumer-facing markets. Despite facing challenges and controversies, including allegations of fraud and market manipulation by US short seller Hindenburg Research, the Adani Group remains focused on consumer rights and market expansion.
As the Adani Group navigates through the evolving landscape of India’s digital economy, its foray into e-commerce and payments signifies a strategic shift towards capturing a larger share of the rapidly growing consumer market. With a strong foundation in infrastructure and a growing digital presence, the Adani Group is poised to make significant strides in the competitive digital landscape of India.
