Adani Group Sets Sights on Indian E-commerce and Payments Sector, to Compete with Google and Reliance

Indian multinational conglomerate, Adani Group, led by Asia’s second-richest man, Gautam Adani, is set to venture into the e-commerce and payments industries. According to a report by Financial Times, the conglomerate is actively pursuing the establishment of a digital business, positioning itself as a competitor to tech giant Google and Mukesh Ambani’s Reliance Industries.

The company is reportedly in the process of applying for a license to operate on India’s public digital payments network, the Unified Payments Interface (UPI), and is in talks with several banks about launching a co-branded Adani credit card. This expansion into digital payments highlights Adani’s strategic move to diversify his conglomerate’s interests into the consumer-driven markets.

In addition to its payments initiative, Adani Group is also negotiating to introduce online shopping via the Open Network for Digital Commerce (ONDC), a government-backed public e-commerce platform aimed at democratizing the digital marketplace. This service is anticipated to be integrated into the Adani One app, launched in late 2022, which already offers various travel services.

While established players like Google and Walmart-backed PhonePe dominate the UPI-based payment apps market, and domestic giants like Paytm and Tata engage in ONDC for groceries and fashion, Adani’s entry could shake up the competitive landscape. The ONDC’s interoperable network design allows companies to engage in e-commerce without needing to invest heavily in their own platforms.

The integration of various business units, including the recently acquired broadcaster NDTV and the Adani Wilmar joint venture, underpins Adani’s consumer-oriented strategy. The group is also planning to set up a think-tank focusing on critical areas such as climate change, energy, and politics.

Sources close to the development suggest that Adani’s new digital offerings will initially target the conglomerate’s existing customer base. This strategy will leverage internal synergies and provide a foundation for expansion into broader markets. “Users could earn loyalty points through bill payments or duty-free purchases and use them for online shopping,” one source explained, highlighting the potential benefits for existing customers.