The Adani Group is considering applying for a licence to operate on India’s public digital payments network and is in discussions with banks to finalise plans for a co-branded credit card, according to a report by The Financial Times.
This move marks a significant step in the conglomerate’s efforts to diversify into the fast-growing consumer markets of digital payments and e-commerce.
Adani to enter UPI and ONDC networks through ‘Adani One’ app
Adani to enter UPI and ONDC networks through ‘Adani One’ app
These initiatives are part of a broader strategy to build a digital business that can compete with established players such as Google and Mukesh Ambani’s Reliance Industries, FT noted.
The Adani Group plans to offer these new services through its consumer app, Adani One. This app launched in late 2022 and currently offers travel services, including flight and hotel bookings.
Hindenburg to Norway: Adani’s recent controversies
Hindenburg to Norway: Adani’s recent controversies
Adani’s push into consumer-facing businesses comes as the group looks to recover from recent controversies. Last year, US-based Hindenburg Research accused Adani of market manipulation and fraud, allegations that led to a significant drop in the company’s stock value and prompted scrutiny from political opponents. Despite these challenges, Adani Enterprises’ shares have rebounded, recovering much of the losses incurred.
Government Pension Fund Global (GPFG), the world’s largest sovereign wealth fund based in Norway, recently decided to exclude Adani Group’s port arm from its investment. They cited the firm’s sale of its port in Myanmar last year as an “ethical consideration” and the company’s “lack of transparency” as reasons for the exclusion.
Strategic integration and recent acquisitions
Strategic integration and recent acquisitions
Digital payments are the latest of several new acquisitions and markets explored by the conglomerate.
In 2022, the Adani Group acquired popular broadcaster NDTV and the following year, BQ Prime, which was renamed NDTV Profit.
According to the FT, the group also plans to establish a think tank focused on climate change, energy, and politics.
Adani Group’s future plans for digital payments
Adani Group’s future plans for digital payments
By targeting existing users of its diverse business portfolio, which includes gas and electricity customers and airport travellers, Adani aims to create a seamless ecosystem. Users could potentially earn loyalty points through bill payments or duty-free purchases, which they could then use for online shopping.
This approach is seen as a way for the company to leverage its large customer base to gain a foothold in the competitive digital payments and e-commerce sectors.
The Adani Group, however, has yet to make any official announcement on its foray into digital payments.
First Published: May 28 2024 | 10:31 AM IST
