While the whole world is in lockdown, India’s largest telecom company Reliance Jio, and the world’s largest social media company, Facebook announced its partnership. Facebook is going to invest Rs. 43,574 crore in Jio Platforms for getting 9.99 percent of Jio stakes. Reliance says this is the largest FDI for Minority Investment in India. However, the real question is Why both of these companies partnered with each other.
Well, as per a media release shared by Reliance Jio, the partnership is going to accelerate Reliance Retail’s New Commerce business on the JioMart Platform using WhatsApp. Those of you who don’t know, JioMart has partnered with millions of small merchants and Kirana shops to serve the need of Indian consumers better.
Now, talking about the numbers, as of December 31 last year, Reliance Jio has over 370.07 million subscribers, WhatsApp, on the other hand, has over 400 million Indian users. Now, if we calculate the intersection of both of these numbers, that is the total number of users, both of these companies are going to target via JioMart on WhatsApp.
Now, If we follow a report by Livemint, then India’s online grocery retail market is going to be $10.5 billion by 2023. Hence, we can see the Jio partnership with Facebook to boost JioMart is going to be profitable. Also, We believe This partnership is going to contribute a lot in that expected $10.5 billion markets.
Currently, Bigbasket and Grofers are the most prominent player in India’s online grocery retail market. Bigbasket captures 1 Lakh orders a day, Grofers, on the other hand, have 40 Thousand requests a day.
Talking about JioMart, Currently, its services in India is available only at three places Navi-Mumbai, Thane, and Kalyan. Right now, JioMart has over 50,000 grocery products with free home delivery, without minimum order value. In the areas mentioned above, JioMart right now is competing with Amazon and Flipkart, who are offering same-day delivery of grocery and household items. Back in March 2019, Reliance acquired Grab A Grub to maintain its logistics. C-Square (a software company), on the other hand, is building solutions for its distributors and retailers.
So, that is all. Now I leave it all upto you to decide Will Facebook-Jio Partnership going to become India’s largest online Grocery Retail Market?