Jio Effect – Next Revolution of Indian Economy

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Jio has been the center of attraction for the past 2 weeks, there have been several key investments in Jio platforms by major giants and is on the rise and has been offering its share to various organizations recently.

Jio Platforms Ltd is a subsidiary of Reliance – the Indian digital services company. The company owns digital businesses of Reliance and Jio as a whole, but recently everyone wants a share of the pie.

So how does Jio add value to Indian consumers and what are the channels?

The Jio Effect:

Jio is a product of Indian multinational conglomerate “Reliance Industries” has not only stepped up their game in the Indian telecom industry but has also created a digital revolution in various technologies and verticals forming a complete ecosystem.

Businesses owned by Jio platforms:

Jio Telecom and broadband services
JioTv – live TV
JioCinema – video-on-demand
JioSaavn – online music streaming services
JioChat – messaging
JioMeet – video-conferencing
JioBrowser – web browser
JioSwitch – file sharing
JioPOS Lite – recharge commission earning
JioGameslite – online gaming
JioMoney – digital currency and payments services
JioMart – online grocery delivery services.

Market sustainability and strategy:
Who doesn’t love free stuff and that is what Jio did. During its initial growth phase, Jio announced some mind-bending moves to the Indian telecom industry like no roaming charges, unlimited voice calls to any number, Reliance Jio apps for free live movies, music, and surfing.

Just paying a mere little extra you get unlimited cheap high-speed 4G and texts. Such plans lured both high-end customers vertical and low to the mid-end user base.

Here are the major Key investments in Jio platforms:

In October 2019, RIL declared the development of Jio platforms. Along with this they also announced that Rs.1.08 trillion liability of Jio was transferred to Reliance. In return, Reliance Industries received shares of Jio platforms.
In May 2020, Jio’s valuation estimated to be Rs 5.15 trillion, the company is then the 4th largest Indian company in market capitalization. From April 2020. Reliance Industries has raised a total of Rs.1,52,056 by selling 32.97% equity in Jio platforms. It is known that Reliance Industries is now completely a debt-free company differentially ahead of its internal schedule.

The effect of COVID-19 in India and the global pandemic:

This global pandemic made a sudden spike and an increase in e-commerce, digital content consumption, and digital payments.

This makes perfect sense why Facebook added $5.7 billion for a 9.9% stake in Reliance Jio and also it is speculated that the integration of WhatsApp pay with JioMart, a clean and neat move at the right time.

Effect of Military strains between China and India:

With the raising military strains over the border between China and India, the government of India resonated by banning 59 Chinese apps including Tik Tok the one has the most user base, reasoned as a “threat to sovereignty and integrity of India”

And then came a sudden project on July 4th “Atmanirbhar Bharat Abhiyan”, which is a way to the future to make India a self-reliant nation.

This activity of Chinese application bans and “Atmanirbhar Bharat Abhiyan” has led to a huge base of customers shifting to “Made in India” apps movement and alternatives like the Jio browser and the Jio switch.

This makes again a perfect sense of Google’s recent $4.5 billion investment in Jio platforms and it creates more room in the app ecosystem for other native applications.

This completely gives the conclusion that Jio’s gonna stay in India for a very long time and there would be a different kind of competition and competitor products have to be built from scratch competing with Jio and breaking its moat.

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