JioMart will compete with vertical online marketplaces such as Alibaba-backed BigBasket and SoftBank-funded Grofers and horizontal players including Amazon Pantry, Flipkart Supermart etc.
Mukesh Ambani’s online grocery venture JioMart has expanded operations to multiple cities after running pilot programme in Maharashtra’s Navi Mumbai, Thane, and Kalyan. While the number of cities JioMart is now serving is not confirmed but based on the pin codes punched-in showed that the service is available in multiple Tier-I and II cities such as Chandigarh, Dehradun, Dhanbad, Gwalior, Kota, Ludhiana, Surat etc. Customers in Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata and other metros can also order from JioMart that will compete with vertical online marketplaces such as Alibaba-backed BigBasket and SoftBank-funded Grofers and horizontal players including Amazon Pantry, Flipkart Supermart etc.
Apart from grocery, JioMart is also offering personal care, home care and baby care products. The company is also giving a minimum of 5 per cent discount on select products. The expected order delivery according to JioMart is two days “however due to the current surge in orders it may be delayed further,” it said on the website while checking out an order. Users can pay via JioMoney wallet apart from standard options including other wallets, card payment, net banking and cash on delivery.
Digital grocery is among the latest bet by Reliance Industries to tap into the digital user base of Jio and the company’s existing retail network. Reliance had recently raised Rs 43,574 crore from Facebook in exchange of 9.99 per cent equity stake in Jio to provide a platform for kirana store owners to connect with customers and vice versa. “In the very near future, JioMart — Jio’s digital new commerce platform — and WhatsApp will empower nearly 3 crore small Indian kirana shops to digitally transact with every customer in their neighbourhood,” Mukesh Ambani had said in a video statement last month announcing the deal.
Reliance has raised multiple rounds of funding in the past few weeks. It last raised Rs 6,598.38 crore from global private equity firm General Atlantic for a 1.34 per cent equity stake in the company. Silver Lake, and Vista Equity Partners were other investors from which it raised capital in similar rounds of funding. GA’s round valued Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, the company had said in a statement.