Jio Platforms, owned and spearheaded by Reliance Industries, has set an example for the industry, by forming partnerships with investors which has led to the company raising upwards of $20 billion in just a few months. Now, it looks like Tata is about to follow said example, and is in talks with investors, seeking partnerships in order to build its own digital marketplace to better compete with Amazon and the new billionaire in the house, Jio Platforms.
The news comes in via a report from Bloomberg. The publication has talked to people close to the matter, who have not been named, as the talks are still underway. However, they have shed light upon what Tata’s goal is: to build “an e-commerce gateway for its consumer products and services ranging from beverages to jewelry and resorts.”
For this, the company is seeking partnerships from financial or strategic investors, including global technology companies. This will be in line with the round Jio Platforms held earlier this year, which saw participation from Facebook, Google, Qualcomm and many others.
While the discussions are at a very early stage, and there’s no guarantee that they will lead to anything, Tata wants to expand its digital presence, as it finds itself ridden with debt. The Bloomberg report claims that the net automotive debt of Tata Motors Ltd., which owns Jaguar Land Rover, was around 480 billion rupees ($6.5 billion), while Tata Steel Ltd.’s group net debt was at $14 billion. Thus, following Jio’s footsteps to raise gargantuan sums of money (which led to Reliance achieving debt free status), must sound very lucrative right now.
Moreover, many of the company’s ventures, including jewellery stores, automobile companies, and of course, Starbucks, can benefit heavily from an online presence.
That being said, just having a digital platform is not enough. India already has a lot of e-commerce platforms, including Walmart’s Flipkart, the new JioMart and of course, the titan itself-Amazon, Thus, the road ahead, whether the company builds a digital presence or not, will not be easy, but choices are always welcome from a consumer standpoint.