"EDITION 85"

Published: 6/5/2020

First friday of Unlock 1.0! Hope y'all have a great weekend but don't move around too much if you don't need to. We finally have the next Jio investor, Abu Dhabi's Mubadala and I shall cover that a bit later. Also OkCredit, the #KiranaTech company is building a product for a new user base:

  • https://bit.ly/2UdmccR: OkCredit pilots a consumer product
  • ➡️ The khata company, OkCredit, is piloting a new feature and it's not targeted to its merchant base (directly), but to the general consumer base who don't really use OkCredit.

    ➡️ The company is piloting a feature that lets consumers (through WhatsApp) order groceries, medicines & other items from stores around it. And it shows the location & information about the store.

    ➡️ This feature is somewhat similar to Google Pay's Nearby Stores product, but to be honest I'm a little confused about it. OkCredit has spent years building products for merchants and building up a significant merchant base. But building products for consumers is very different.

    ➡️ It also is quite a deviation from the company's core mission of building products and services for the millions of SMEs in India. Would this lead to a larger roll-out of the product and OkCredit turning into a sort of marketplace for consumers, while building full stack solutions for merchants?

    ➡️ If they continue to go down this path, they may face stiff competition (and potentially Khatabook) along with all the other grocery delivery services and what not. Is there really more money in competing for the same set of consumers or is this just a minor play for OkCredit who are still focussed on products for merchants? Only time will tell.

    2. https://bit.ly/3cBxDSa: Jio Platforms raises $1.2B from Mubadala

    ➡️ And it's here! Yet another billion dollar raise by Jio, and the investor is Mubadala Investment Company, Abu Dhabi's sovereign wealth fund.

    ➡️ This is the sixth investment announced in Jio (in 6 weeks!) following Facebook ($5.7 billion), Silver Lake Partners ($747 million), Vista Equity Partners ($1.5 billion), General Atlantic ($870 million), and KKR’s Asia PE Fund ($1.5 billion).

    ➡️ Jio has raised a combined ~$12B while Reliance diluted 18.97% of its stake in the company. The company had targeted to dilute about 20% of the company so there might be another investment coming up next (any bets on who it will be?)

    ➡️ We all know the impressive Jio story of how the company became the largest telecom company in India in just a few years, while the company accumulated a significant amount in the process.

    ➡️ Moreover, Jio isn't the only telecom in the news this week. There are also other reports of Google potentially looking to invest in Vodafone Idea & Amazon in Airtel. India is probably the largest (open) internet consumer base and global tech companies want to grab a slice of the next billion internet users.

    ➡️ I'm interested to see how deeply these global tech companies try to bundle their products and services with the telcos because they definitely have some competing products, but Airtel & Vodafone definitely need the capital so I'm sure it will work out well for all sides.

    Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day): https://twitter.com/HipCityReg/status/1268532135276806146