Reliance refers to start-up playbook to grow Jio into internet behemoth

Jio recently started JioMart, its much-talked-about e-commerce venture that is built on top of technologies absorbed from start-up acquisitions

If there is one thing that Reliance Industries took from the start-up playbook, it is how to grow fast inorganically. Its telecom subsidiary Jio has now metamorphosed into a full-blown internet services venture, with offerings in video and music streaming, cable, payments and messaging, thanks to a string of acquisitions the Mukesh Ambani-led company sealed in the past two years.

Last week, Reliance unveiled its next big offering. JioMart, which was launched in Mumbai, is Jio’s long anticipated e-commerce venture and is expected to disrupt the status quo in market dominated by heavyweights like Flipkart and Amazon. For now, JioMart is selling groceries through thousands of kirana stores on its platforms, a model known as online-to-offline commerce and popularised by China’s Alibaba.

Jio’s march into new sectors at break-neck speed is enabled by picking up strategic bets in start-ups that have given it access to new technologies and proven systems. Jio itself (until 2015) was Infotel Broadband Services, a firm Reliance had acquired for its telecom licence in 22 cities. Through the years, Jio has picked up majority and near-majority stakes in 16 start-ups. (See the box below)

Choosiest acquisitions powering Jio ecosystem

 

August 2019: Fynd
 

Fynd's machine learning tech will power JioMart product-listings, curated from real-time inventory in neighborhood stores

Investment size: $43 mn

 

Apr 2019: Haptik

The conversational AI start-up will someday allow JioMart customers to order simply by speaking into the phone

Investment size: $700 mn

 

Mar 2019: Saavn

Rebranded JioSaavn; marks Jio's headfirst entry into music-streaming, one of the hotest internet sectors

Investment size: $1 bn

 

Mar 2019: Grab-A-Grub

Last-mile delivery partner for Jio e-commerce services

Investment size: $15 mn

 

Feb 2019: Reverie

Vernacular voice intelligence chat-bot

Investment size: $35 mn

 

Oct 2018: Den Networks, Hathway Cables

Backbone of Reliance JioFibre and pay-to-use TV offering

Investment size: $600 mn (estimated)

 

Jun 2018: Radisys
 

The US-based telecom solutions company is Jio's lab for IoT and 5G development

Investment size: $75 mn

 

Apr 2018: Embibe

Reliance's play in Edutech, where it is still testing the waters

Investment size: $180 mn

 

Take for instance its most recent bet on Fynd, in which it picked 87 per cent for Rs 300 crore. Fynd is a tech-enabled e-commerce venture that acts as a bridge between physical retail stores and online shoppers. Using proprietary technology, it maps inventory at stores for real-time sale on Fynd, thereby helping retailers to clear stocks, and also shoppers to buy from stores in their vicinity.

Combine this with Haptik, an AI chat-bot Reliance acquired early last year, Jio has the capability to manage sales, send discount notification, and target users with precision.

“Onboarding of Kiranas have started long back. Basically, they are given a PoS device which is digitally-enabled. It carries out billing, accounting, inventory management. Through this, those who could not accept digital payments earlier, can do so now,” said a source aware of Jio’s strategy.

“Store owners can also create their own discount codes and target users. Brands can also send specific discount offers, say on a specific pack of biscuits, to stores to pass on to the customers,” said this person.

For deliveries, JioMart will use Grab-a-Grub, a last-mile logistics start-up, Jio had acquired in March 2019.

While more detail will emerge when the dedicated JioMart application is launched, but Jio has created a large network of internet services to keep the user hooked. The biggest is JioSaavn, which has over 100 million monthly active users. It also has stakes in Balaji Telefilms and Eros International, which power Jio Cinema and JioTV, two online video streaming applications.

In payments, the company has its own UPI application Jio Money as well as Jio Payments Bank.