The reason behind the flood of dollars flooding billionaire Mukesh Ambani’s Jio Reliance platform begins to become clearer as his e-commerce company JioMart begins to spread to more people across India.
JioMart, an e-commerce company between the country’s leading telecoms operator, Jio Platforms, and the leading retail chain Jio Retail, has just launched its new website and began accepting orders in dozens of Tier 1 and Tier cities. 2, including Delhi, Chennai, Kolkata, Bangalore, Pune, Bokaro, Bathinda, Ahmedabad, Gurgaon, and Dehradun. A Reliance executive said JioMart is live and delivering in 200 cities and towns in India.
Before the expansion on Saturday, the service was available in three Mumbai suburbs. The service now includes perishables, such as fruits and vegetables, and dairy products, as well as staples and other grocery items, as it targets Indian households across the country.
Reliance Jio Platforms by Ambani, which has raised more than $ 10 billion in the last month by selling a stake of approximately 17%, has accumulated more than 388 million subscribers, more than any other telecommunications operator in the country.
Earlier this week, the U.S. e-commerce giant entered the Indian food delivery market to challenge the Zomato duopoly, backed by Prosig Ventures, and Zomato, backed by Ant Financial. Amazon is making a huge recruiting effort in India, and is looking to hire nearly 50,000 temporary workers to keep up with the growing demand on its platform.
Meanwhile, Ambani’s Reliance Retail, founded in 2006, remains the largest retailer in India by revenue. It serves more than 3.5 million customers each week through its almost 10,000 physical stores in more than 6,500 cities and towns.
JioMart may have Amazon and Flipkart in their sights, but in its current form, however, the company is going to be a headache for Grofers and BigBasket, the top grocery delivery companies in India.
Reliance Industries, the top rated company in India and parent entity of Jio Platforms and Reliance Retail, plans to expand JioMart to over a thousand districts in one year and also expand its catalog to include electronic products and office supplies among a variety of other categories, a person familiar with the matter told TechCrunch. A Reliance Jio spokesman declined to comment.
The expansion to more cities comes a month after JioMart launched its WhatsApp business account, allowing people to easily track their orders and invoices on the Facebook-owned service.
Facebook announced that it would invest $ 5.7 billion in India’s Relio Jio platforms last month and pledged to work with the Indian firm to help small businesses across the country. The JioMart WhatsApp account currently does not support expanded regions.
Mukesh Ambani, the richest man in India and the president and managing director of Reliance Industries, first unveiled his plan to launch an e-commerce platform last year. In a speech, then, Ambani invoked the work of Mahatma Gandhi and said that India needed to fight another new battle.
A handful of companies have tried, and failed, to launch their e-commerce websites over the years in India, where more than 95% of sales are still made through physical stores. But Ambani is in a unique position to fight the Amazon duopoly and Walmart’s Flipkart, thanks in part to the more than $ 10 billion in investment dollars the company recently raised from KKR, Facebook, Silver Lake, Vista Equity Partners. and General Atlantic. In addition to scaling JioMart, the new capital should also help Ambani pay off some of Reliance Industries’ $ 21 billion debt.
“We have to collectively launch a new movement against data colonization. For India to succeed in this data-driven revolution, we will have to migrate control and ownership of Indian data back to India, in other words, Indian wealth back to every Indian, “Ambani said at an event at attended by Indian Prime Minister Narendra Modi.