‘There is no winner take all…’: Billionaire competitor on Mukesh Ambani’s Rs 166000 crore move

Mukesh Ambani is set to disrupt the fintech sector with the Reliance spinoff Jio Financial Services Ltd (JFSL). JFSL was valued at over USD 20 billion or Rs 1,66,000 crore at Rs 261.85 apiece after listing. 

JFSL will have Reliance’s advantage through the consumer business including the country’s largest wireless operator with about 428 million users and a leading retail chain with over 17,000 stores.

The demerger created the fifth-largest financier in terms of capital in India. It became the third largest NBFC in India.

JFSL will compete directly with the likes of Paytm and Bajaj Finance. Paytm, founder and CEO Vijay Shekhar Sharma recently commented on Reliance Jio’s entry into the lending business. Sharma asserted that there was an opportunity to “co-exist” and “expand” in the market.

“There is a large market to be served by many more players. I believe that this country’s opportunity is so underserved that many more players from distribution to book ownership to large institutes have opportunity. There is an opportunity to co-exist and expand. There is no winner take all,” Sharma said as per a LiveMint report.

Sharma's comments come amid nervousness in the air for digital lending startups amid the entry of a new behemoth. With Mukesh Ambani's tried and tested winning strategy of reaching masses on the back of financial prowess, rivals are braced for disruption. 

(Inputs from PTI)