India’s major conglomerates are racing to develop superapps, aiming to emulate the success of Tencent and Alibaba in China. Joining the fray, Adani Group, led by Gautam Adani, has set an ambitious target for its superapp, Adani One, to be installed by one in three Indians by the end of the decade.
The Tata Group launched its superapp, Tata Neu, in early 2022, consolidating its vast array of consumer businesses, while Mukesh Ambani’s Reliance Industries introduced MyJio, integrating its diverse consumer and entertainment services. Despite their extensive consumer reach, neither has fully captured the market.
Adani One, incubated by Adani Enterprises Ltd, was introduced in December 2022. Initially a travel app for booking flights and hotels, it generated transactions worth Rs 750 crore ($90 million) in the fiscal year ending March 2024, according to the company’s annual report. The app currently has 30 million users, but Adani aims to reach 500 million by the decade’s end.
“Reaching such a large audience without investing in basic internet services like telecoms, data, entertainment, or payments is challenging,” said Kashif Ansari, assistant professor of banking and finance at O.P. Jindal Global University.
India’s digital economy is expected to grow significantly, with over a billion Indians forecasted to own smartphones by the decade’s end. The domestic online shopping market could reach $450 billion, driven by rapid digitization and economic growth, according to RedSeer Strategy Consultants.
Adani Group’s push into the superapp space follows a tumultuous period marked by a stock selloff triggered by short-seller Hindenburg Research. To attract more users, the company plans to apply for a license to operate on India’s Unified Payments Interface, enabling it to process payments for its various services without third-party charges.
In June, Adani launched a credit card with ICICI Bank Ltd, offering airport lounge access, shopping vouchers, and reward points. Collaborations with Google, Microsoft, SAP, ICICI Bank, Citibank, and Pine Labs Pvt are part of its broader digital strategy.
Despite Adani’s ambitions, analysts remain skeptical. “Other than airports and utilities, Adani does not have many consumer businesses,” said Karan Taurani, senior vice president at Elara Securities India Pvt Ltd.
India’s new data protection laws could also pose challenges. Financial regulators prohibit cross-sharing of customer data within the same financial institution, a rule that may extend to the digital realm, potentially complicating superapp strategies.
Adani One aims to leverage its role as an energy supplier, with services ranging from electricity and natural gas to edible oils and real estate. However, distinguishing itself in a crowded market remains a significant challenge.
As Indian conglomerates continue to explore the superapp model, the success of these ventures will depend on their ability to integrate diverse services seamlessly while navigating regulatory landscapes.
