Recently Mukesh Ambani-owned Reliance Industries Ltd. (RIL), has taken up almost 6 startup companies under its wing. In an aggressive push that signifies major development in the Indian startup ecosystem, the corporate giant has snapped up startups in the e-commerce and software technologies space.
The following major startups were acquired by RIL in the last few months to claim a large share of the e-commerce industry and with sight set on establishing a gigantic presence in the Indian startup scene.
- Grab A Grub: last mile logistics delivery service for Rs. 106 crore.
- C-Square Info Solutions: Pharmacy-focused software services firm for Rs. 22.04 crore.
- Haptik: AI-based conversational platform for 700 crores. It helps businesses to build chatbots to automate business processes.
- Reverie Language Technologies: vernacular language-as-a-service platform. It is a Bengaluru based startup and enables real-time delivery of online content in multiple Indian languages.
- EasyGov: Indian Government schemes/services aggregator for Rs. 18 crores, it is a software-as-a-service startup that enables citizens to search and apply for various Indian government schemes/services from a single platform.
- SankhyaSutra Labs: Multiphysics simulation service. It helps in the virtual simulation of solutions to industrial problems and removing the need to conduct costly physical experiments. This startup was taken up for Rs. 16.02 crore.
As per reports, these partnerships are a result of the decisions of Mukesh Ambani, head of the industries and Asia’s richest man. He plans to overthrow his rivals in the e-commerce industry, such as Amazon, Walmart, by entering around $36 billion in India’s e-commerce market.
In the recent past, Mukesh Ambani had announced his plans of launching an e-commerce platform that would get an investment of about Rs.3 Crores. He declared this at the Vibrant Summit that took place in Gujarat, with India’s Prime Minister, Mr. Narendra Modi present.
This new project will empower 1.2 million shopkeepers in Gujarat. Ambani’s most ambitious project will be done by a joint venture of Reliance Jio and Reliance Retail, across 5000 cities and towns. Many remote villages will also be able to enjoy the benefits of this plan.
What do the market experts say?
Arvind Singhal, chairman and managing director at retail consultancy firm Technopak said,
“Reliance has an ecosystem of entertainment, financial services, payment gateway, etc. Once it has customers hooked on to these services, then it is a question of time before it can start offering merchandise as well.”
Revolutionising the entire RIL market
Also, the main motive of the acquisition of all 6 companies is to integrate the whole Reliance market and various startups under one roof i.e. now Indians of all languages can use online entertainment services, government services, retail services and e-commerce services of Reliance under one roof.
● RIL intends to bring all of its online/offline platforms under one stage as this will result in all the consumers that use any one of its services to use all of them.
● Mr. Mukesh Ambani intends to integrate 20 startups that it took up along with Reliance Jio, JioSaavn, Reliance Trends, Reliance Retail, Reliance Oil and Gas industries and engineering consultancy services, Grab A Grub, C- Square info. Solutions, Haptik, Reverie Language Technologies, Easy gov and Sankhya Sutra labs.
● RIL also intends to make a voice-activated artificial intelligence that will work across English and almost 200 Indian languages similar to Apple’s Siri, Google’s assistant, and Amazon’ Alexa. This will be done by Reverie’s assistance and Haptik will provide the most necessary AI.
● Thus any big startup that is very unique and provides any kind of logistics and tech solutions and is also survived for at least a few years is likely to be taken up by RIL.
● Reliance has targeted both rural e-commerce and urban entertainment and retail.
● The Reverie Language Technologies has won over customers from different industries including OEMs like Qualcomm and consumer Internet companies such as OLA and Practo, while also engaging with app developers through its language-as-a-service platform.
● Thus this whole acquisition has been aimed at building a network of startups and for the promotion of startups in India.