Indian conglomerate Adani Group is setting its sights on the booming digital payments and e-commerce landscapes, according to a Financial Times report. This diversification effort led by billionaire Gautam Adani-led group puts it directly against established players like Mukesh Ambani’s Reliance, Amazon, and Walmart-owned Flipkart and PhonePe.
According to the report, Adani Group is actively considering securing a license to operate on India’s Unified Payments Interface (UPI), the nation’s foremost public digital payments network. Currently, PhonePe dominates India’s digital payments sector with total transactions valuing at Rs 10,01,680 crores as of April 2024, according to data by NPCI. Google Pay and Paytm, with transactions respectively worth Rs 6,94,190 crores and Rs 1,22,554 crores, follow. Additionally, discussions are underway with banking partners to materialize plans for a co-branded credit card, enhancing its footprint in the financial services sector.
The conglomerate is also in talks to leverage the Open Network for Digital Commerce (ONDC), a government-backed platform fostering e-commerce growth in India. Adani Group’s consumer app, Adani One, which debuted in 2022 offering travel-related services, will serve as the gateway for these new offerings.
This strategic shift comes amidst challenges faced by Adani Group, including allegations of market manipulation and fraud by U.S.-based Hindenburg Research, leading to significant stock value depreciation and heightened scrutiny. However, Adani’s enterprises have seen a recovery in their share prices.
Experts see Adani’s strategy as a bid to compete with established giants like Google and Reliance Industries, led by Mukesh Ambani. By leveraging its existing customer base across sectors like airports, utilities, and travel, Adani could reportedly create a loyalty program that incentivizes online shopping within its ecosystem.
More details are under wraps and the conglomerate is yet to make an official announcement regarding its latest foray. Still, the reported plans suggest a significant shift towards a consumer-centric future for the Adani Group.
