Reliance Industries Limited (RIL) is reportedly planning to introduce new financial services, announcements of which could be made by the company’s chairman Mukesh Ambani during the Annual General Meeting (AGM) on July 15.
RIL is planning to offer mutual fund and broking insurance products on its Jio platform, in addition to its telecom and ecommerce business, sources close to the developments told Mint. With its customer base of 387.5 Mn and Reliance Retail’s 11,784 stores, the company already has a strong distribution network in place for any products which it plans to launch in the future. Digital payments app JioMoney will be one of these products. It is mentioned on the JioMoney website that the app will be available on MyJio from July 15, the same date as the AGM. RIL also holds a 70% stake in Jio Payments Bank, a joint venture with the State Bank of India (SBI), which is awaiting a formal launch.
Over the past several months, RIL has been engaged in a strategic stakes sale in Jio Platform, bringing a slew of investors, such as Facebook, General Atlantic, Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, among others, on board.
On Sunday (July 12), Jio Platforms raised another INR 730 Cr from California-based venture capital firm Qualcomm Ventures, the investment wing of Qualcomm, the world’s leading mobile chipset and modem maker. Qualcomm now has a 0.15% equity stake in Reliance Jio at an equity value of INR 4.91 Lakh Cr. This was the 13th investment in Reliance Jio in the past three months. The spate of investments have helped the company raise a total of INR 118,318.45 Cr and become net-debt free.
Reliance Jio has also been rapidly expanding its product offerings. In December 2019, the company launched JioMart, an online grocery delivery service, a joint venture between Reliance Retail and Jio Platforms. Earlier this month, Jio Platforms launched its video-conferencing application JioMeet, which had a host of enviable features such as free group video meetings with up to 100 participants, for as long as 24 hours. RIL’s consumer businesses, retail and Jio, now account for 35% of its consolidated segment earnings before interest, taxes, depreciation, and amortisation (Ebitda).
According to Mukesh Ambani, the company, with its diversified revenue streams and conservative balance sheets, place it in an advantageous position to face any macro challenges it may face.