This man has $24 billion to build the next digital services holding empire in India! Yes, billionaire Mukesh Ambani, the richest man in Asia, and controller of Reliance Industries, has moved to exert his business empire into e-commerce. Reliance Industries will drop $15 billion into a new digital services subsidiary to fund an e-commerce push connected to its popular Reliance Jio mobile phone service, notes Fortune.
Billionaire Mukesh Ambani moved a step closer to creating an e-commerce giant for India, unveiling plans to set up a $24 billion digital-services holding company that would become the main vehicle in his ambition to dominate the country’s internet shopping space.
The board of Ambani’s Reliance Industries approved a proposal to plow 1.08 trillion rupees ($15 billion) into the fully owned subsidiary, which will in turn invest that amount in Reliance Jio Infocomm, the conglomerate’s telecommunications venture. A series of capital transfers would make Jio, which already has capital of 650 billion rupees ($9.2 billion), almost debt free by March 2020, the parent said Oct. 25.
That is how India’s entrepreneurs plan to protect their domain from foreign competitors – deployment of massive war chest. Africa needs to rise because if someone is investing $24 billion to unlock digital commerce and business, we have a long way to go. Yes, our sub-$50 million funding will not do it.
“Jio has been heralding the digital services revolution in India and will continue to do so in the years to come,” Ambani said in a statement.
“Given the reach and scale of our digital ecosystem, we have received strong interest from potential strategic partners,” he added