BusinessE-Commerce

Jio might find solace with Softbank’s investment

Logo of Reliance industries

Reliance is one of the biggest conglomerates in India. It has survived through all the storms and has managed to become a pioneer in, not one, but many businesses. The company has managed to outclass its opponents and it has been one of the richest in India as well.

Reliance Industries gave a gift to the Indian consumers with Jio. The telecom subsidiary of Reliance, in a single night, changed the entire face of the telecom industry in India. The company managed to hit it out of the park with its free three month 4G plans and earned a huge customer base. Then charges way less than any other companies in India. The data plans in India are the cheapest in the world and that makes Jio the cheapest network in the entire world; which is a wonderful tag to have.

That being said, Jio is looking for investments as the company is entering e-commerce as well. And to flourish in e-commerce, one needs deep pockets and strong investors. Softbank, one of the biggest investment firms in the world are rumored to be looking at Jio for investments. The Vision Fund led by bankers will be looking at Jio and their plans.

There were rumors about Mukesh Ambani looking to reduce the debt and raise some funds for its e-commerce venture. This might be it as Softbank, another huge company from Japan is looking to invest in fast-growing tech companies.

As soon as this rumor hit the share market, the stock price of Reliance increased by 1% as the market dropped. The shares of RIL traded 0.72% higher than everyone else. The stock fell around 2.76 percent to INR 1344 from INR 1354 even after the reports of quarterly profits.

That being said, Softbank and Jio would be a partnership made in heaven. With all those companies under its portfolio, Softbank can bring some great wisdom to the newer Jio while entering the e-commerce battle with the giants.

The Mukesh Ambani-led Jio will have to be wary of the competition from Amazon and Flipkart. The two giants have outlasted and outclassed everyone who has come in their way. However, Jio might be a different beast with its reach. It has access to almost every nook and corner of the country which neither of the e-commerce giants has.

This is why Softbank might be thinking of investing in Jio given that it is going to disrupt the Indian e-commerce market the way it disrupted the telecom market.

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