Home Business Adani Group reportedly set to venture into UPI, digital payments, and credit card services.

Adani Group reportedly set to venture into UPI, digital payments, and credit card services.

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The report claimed that Adani Group will activate services on their consumer app, Adani One, launched in 2022, upon finalization of these developments.

Reportedly, Gautam Adani-led Adani Group could venture into ecommerce and payments sectors, aiming to diversify into the rapidly expanding market. Financial Times, citing informed sources, stated that Adani Group intends to establish a digital enterprise to rival Google and Mukesh Ambani’s Reliance Industries. Additionally, it may seek a license to operate on India’s UPI and conclude a previously declared co-branded credit card.

Adani Group Forges Ahead with Ambitious Plans in India’s Digital Commerce Landscape

The company is in discussions to provide online shopping via the government-supported Open Network for Digital Commerce (ONDC), eliminating the need to invest in proprietary payments or e-commerce platforms. Adani Group will activate services on their consumer app, Adani One, launched in 2022, upon finalization of these developments, as per the report. Initially, the company will focus on existing users such as gas and electricity customers and airport travelers, enabling them to earn loyalty points through bill payments for online shopping purposes, the report further stated.

The company is contemplating obtaining a license for operation on India’s Unified Payments Interface (UPI), a widely utilized public digital payments network. Financial Times, citing sources, reported that it is also in discussions with banks to finalize plans for a co-branded Adani credit card. Additionally, it is negotiating to offer online shopping via India’s rapidly expanding public e-commerce network, the Open Network for Digital Commerce (ONDC), supported by the government. The digital public infrastructure “stack” in India, comprising ONDC and UPI, attracts numerous organizations aiming to establish consumer technology firms and appeals to hundreds of millions of consumers monthly.

Adani Group
Image Source:Adani Group

If approved, services will be accessible via Adani One, the company’s consumer app launched in late 2022, offering travel-related services such as hotel and flight bookings. According to sources cited by the Financial Times, the company’s e-commerce and payments offerings would initially focus on its current customer base, which reportedly includes hundreds of millions of individuals, including travelers using its airports and gas and electricity customers. These individuals could earn loyalty points through bill payments or duty-free purchases, which could be used for online shopping, the sources claimed. Targeting existing users in this manner would provide Adani with “a platform to move into much larger areas,” one source stated, while another mentioned plans to incorporate NDTV content into the app this year. Adani declined to comment, as reported by FT.

Gautam Adani, the politically connected founder of the group, aims to steer past recent challenges and broaden his company’s reach into rapidly growing consumer-oriented markets. Financial Times reports that Adani has amassed an extensive portfolio of ports, airports, and power plants, propelling him to the position of the second-wealthiest individual in Asia. Following a controversy last year involving allegations of fraud and market manipulation by US short seller Hindenburg Research, the company is prioritizing consumer protection. The accusations, which led to a $150 billion plunge in Adani’s listed stocks, sparked heightened scrutiny, particularly due to the founder’s close ties to Prime Minister Narendra Modi, attracting criticism from opposition figures.

Adani Group
Image Source:Adani Group

Throughout India’s ongoing election season, the company has maintained its prominence. Last week, a Financial Times investigation alleged that Adani had sold lower-quality coal as higher-priced, cleaner fuel to a state utility, prompting the opposition to threaten scrutiny into the company if elected. Modi has accused his opponents of receiving “black money” from Adani. The group refutes any wrongdoing, and the investigation into the Hindenburg claims remains ongoing with India’s securities regulator. Despite this, Adani’s businesses have thrived; the company’s shares have nearly recovered all losses from the previous year, notably Adani Enterprises.

You might also be interested in – Adani Ports to join Sensex on June 24; Wipro to exit.

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