The acquisitions will help bolster this network of partners. Last week, Reliance said it would spend $101 million to buy and fund the expansion of Haptik Infotech Pvt., a company that provides customer support chat services using artificial intelligence.
Radisys Corp. will help Reliance in enhancing its presence in the so-called Internet of Things and 5G in a bid to launch its broader e-commerce business, while Vakt Holdings will build a digital ecosystem leveraging block-chain technology. Grab a Grub will help Reliance deliver food, groceries and other merchandise using bikes as a delivery method in a hyper-local approach. Infibeam Avenues will help create e-commerce market places, Mint reported on its website.
The “acquisitions will help Reliance create a unique and a very powerful digital economy ecosystem for Reliance, which is way beyond simple merchandise e-commerce,” Arvind K. Singhal, chairman and managing director of Technopak Advisors, a management consulting firm, was quoted as saying in Bloomberg report.
While Ambani puts together the building blocks to take on Amazon and Walmart, the broader fight is already taking shape in India. In a move widely interpreted as extending a helping hand to home-grown business, the government imposed late last year restrictions on the global giants, requiring them to cut cash-back payments and discounts -- methods that have been criticized by smaller sellers who’ve accused the companies of predatory pricing.
To adjust to the rules, Amazon and Walmart have removed thousands of products from virtual shelves and must redraw contracts with merchants and brands as well as brace for a full-fledged e-commerce policy that is being reviewed.
As the battle lines are drawn, clues to how Reliance could use its might in its latest venture may be found in the way Ambani reshaped India’s telecommunications landscape with Jio over two years. That approach led many rivals to retreat, including brother Anil’s Reliance Communications.
“With its own telecom network, Reliance in India can go way beyond Amazon and Flipkart,” Technopak’s Singhal said. “The Reliance ecosystem -- still in progress -- for digital economy has multiple, very powerful components that include retail, entertainment, education and financial services.”