India’s Adani Group, a prominent energy and infrastructure giant, is set to make a significant foray into the digital payments and ecommerce sector, aiming to expand its business portfolio and compete with key players such as Mukesh Ambani’s Reliance, Amazon, and Walmart’s Flipkart and PhonePe. According to a recent report from the Financial Times, the conglomerate is in discussions to enter the digital space, with plans to apply for a license to operate on India’s Unified Payments Interface (UPI) and finalize a co-branded credit card with banks.
This strategic move marks Adani’s entrance into consumer-facing markets, as the group’s founder Gautam Adani aims to diversify the empire beyond its existing infrastructure and logistics assets such as ports, airports, and power facilities. The company is evaluating opportunities to leverage India’s digital public infrastructure ‘stack’, including the UPI and government-backed Open Network for Digital Commerce (ONDC), to reach millions of users on a monthly basis.
Adani’s proposed digital offerings are expected to be accessible through the Adani One consumer app, initially catering to the conglomerate’s existing customer base. The move comes on the heels of a challenging period for Adani, following allegations of market manipulation and fraud by a US short seller, which led to a significant loss in the group’s listed stocks. Despite these setbacks, Adani’s recent resurgence and fundraising plans signal the company’s intention to revamp and integrate various aspects of its business.
Industry analysts remain cautious about Adani’s prospects in the competitive Indian market, citing the dominance of established players like Reliance and Flipkart. However, Adani’s strategic focus on existing users for the rollout of its ecommerce and payments services could provide a stepping stone for expansion into broader consumer segments in the future. As the digital landscape in India continues to evolve, Adani’s move underscores the group’s determination to establish a foothold in the rapidly growing ecommerce and payments sectors.
