A new report from insider sources suggests that Reliance Industries Limited (RIL) may be contemplating a new app in partnership with social media giant Facebook. There was talk a few months ago about Facebook looking to acquire a 10 per cent stake in Reliance Jio. This was estimated to be worth billions of dollars, although we haven’t heard much more since then.
This Reliance-Facebook “super app” will reportedly cater to all the customers’ needs including shopping on platforms like Reliance Fresh, Reliance Digital as well as Ajio. Handling the payment aspect will be JioMoney.
This will give RIL a foothold in the B2C or business to consumer segment while also giving a good idea about its customers’ spending habits. Data like this can be crucial for the growth of an app-based business model, especially one driven by retail.
Additionally, this app will also have travel-related services, including flights, hotels, and so on. The combination of all these features will certainly make this a force to reckon within the industry. This is somewhat similar to China’s WeChat, which offers a comprehensive solution to all the users’ needs in one app.
Insiders quoted by the Economic Times mention that the situation is currently fluid and there is no data available on the funding model or the financial structure of the partnership. It is said that financial firm Morgan Stanley has been hired as the investment banker for this project.
A person believed to be working with the inner team of this proposed app said - “A new company could be created — where both the players could invest; or Facebook could invest in Reliance Jio and Reliance Retail, and that is the way the partnership could be formed for the new venture.”
While the coronavirus may have certainly put a damper on the development of this project, it could get a lease of new life when things go back to normal eventually.
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