InvestorQ : Is it true that Reliance Industries and Facebook are making a big foray into the Kirana Stores through the deal announced on 22 April?
shrinidhi Rajan made post

Is it true that Reliance Industries and Facebook are making a big foray into the Kirana Stores through the deal announced on 22 April?

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Riya Dwivedi answered.
2 years ago
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While Facebook taking a 9.99% stake in Reliance Platforms is part of a larger game plan to dominate the digital market place in India, one clear target for both appears to be the local Kirana store. One aspect of the deal between Reliance Platforms and Facebook is to accelerate Reliance Retail's Jio Mart platform by connecting nearby Kirana shops to customers. Now Facebook and Reliance want these local Kirana shops to provide their products and services to end consumers, which number in billions, by transacting through Reliance's Jio Mart using Facebook's WhatsApp. This could actually turn out to be a saving grace for Kirana stores that are already facing the pressure from ecommerce websites. The focus for the two players will be on the informal retail sector. India's Kirana stores account for 80% of the country's retail industry and is a huge opportunity. They see an opportunity worth $700 billion in transforming the unorganized retail market and bringing Kirana stores into the retail mainstream. Most of these Kirana stores may eventually double up as last mile delivery hubs for online fulfilment as well as act as pick-up points.

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