The Gautam Adani-led Adani Group is reportedly eyeing a strategic entry into the e-commerce and payments space, signaling its intentions to expand into rapidly growing consumer-facing markets.
Plans for E-commerce and Payments
According to reports from Financial Times, the ports-to-power conglomerate is considering applying for a license to operate on the Unified Payments Interface (UPI), a move that would enable it to venture into the digital payments arena. Additionally, the company is exploring the possibility of launching a co-branded Adani credit card in collaboration with banks. Furthermore, discussions are underway regarding the provision of online shopping services through the government-backed Open Network for Digital Commerce (ONDC).
Platform and Competition
If these plans materialize, the Adani Group is expected to offer these services through the Adani One app, launched in 2022. This strategic expansion would position the group in direct competition with established players such as Google and Walmart-backed PhonePe, as well as domestic contenders like Paytm and Tata, which leverage ONDC for grocery and online food delivery services.
Recovery from Challenges
Despite facing challenges such as allegations of corporate misdoings and market manipulation by US-based short seller Hindenburg Research, which significantly impacted its market value and personal wealth, the Adani Group has shown resilience. Shares of Adani Group’s flagship company Adani Enterprises have recovered, almost entirely erasing the stock market losses incurred last year.
Strategic Timing
The Adani Group’s move into e-commerce and payments aligns with the success story unfolding around ONDC, which has been instrumental in facilitating the expansion of digital businesses in India. Companies across various sectors, including transportation, media, and automotive, have leveraged ONDC to enhance their offerings and reach a wider consumer base.
ONDC Ecosystem
Several key players in the Indian market have already embraced ONDC to diversify their services and expand their market presence. This includes partnerships between online bus ticket booking platform redBus and ONDC for metro ticket bookings and auto-rickshaw rides, as well as initiatives by ride-hailing giants like Ola and Uber to broaden their mobility offerings. Furthermore, plans for Ola Cabs to venture into fashion and grocery delivery services via ONDC highlight the platform’s potential for driving innovation and growth across diverse sectors.
Future Outlook
As the Adani Group gears up to enter the e-commerce and payments sector, its strategic alignment with ONDC underscores the platform’s role as a catalyst for digital transformation in India. With the growing adoption of digital services and the expanding ONDC ecosystem, the group’s foray into this space holds significant promise for driving innovation and shaping the future of e-commerce and payments in the country.
