JIO Finance – Advantage Ambani. Disadvantage Sanjiv Bajaj.

 23^rd October 2022

JIO Finance – Advantage Ambani. Disadvantage Sanjiv Bajaj.

Dear Fellow Investors,

Namaste! Mukesh Bhai has tons of TRICKS to divert the attention of shareholders from the FLAT performance in the last quarter. He announced the listing of JIO Finance and rewarded shareholders with 1 free share of Jio Finance against 1 share of Reliance Industry. We will come to know the effect of the same in Diwali Mahurat day trading on Monday.

What is JIO Finance intending to do?

It is going to be a full-fledged NBFC with all kinds of financial products/services / mutual funds and many more things. As per March 2021 data Reliance has 12000 plus retail outlets. 400 reliance digital outlets. Crores of JIO Mobile users. Tie up with 1 million KIRANA shops or more. It means they have the biggest retail empire. Every day tons of customers buy from their stores – online or offline.

These customers were using some banks for financing their purchases or some UPI or instant loans from companies like BAJAJ FINSERVE.

The easiest thing to tap these customers is to have Reliance’s own NBFC so that they can cater to them and make some money. JIO UPI is already active. But with JIO Finance they are going to cater to all the needs of the customers from the financial side also.

It means – buying our products and using our money.

Standalone finance companies / UPI companies will have tough competition as JIO finance will provide all the services at the most competitive interest rates and other offers.

Mukesh Bhai is copying STEVE JOB: -

In his biography – STEVE JOB shared a beautiful strategy. He said, “If you want to sell your SOFTWARES, you need to have your own HARDWARE”.

Steve had a lot of imagination for technology software. All he did was to make the designers create the design of the BEAUTIFUL HARDWARES in the form of Mobile / Lap Tops and other things.

Mukesh Bhai had focused first on developing the HARDWARES– infrastructure. Now he can RUN the “N” number of SOFTWARE on the same. JIO Finance is one such SOFTWARE, he is running on RELIANCE RETAIL STORES and other RELIANCE CUSTOMERS and SHAREHOLDERS and Indian People as a whole. Maybe someday it will provide services to the population of the World also. Singapore is the financial capital of the World. We should keep this in mind.

What it means for standalone NBFCs?

Mukesh Bhai will create disruption in the financial market as per his habits and the small and not-so-strong NBFCs will have a tough time competing with JIO FINANCE.

Those who are established will have to change their way of working and their profit margins will be affected for sure in the years to come.

So, keep this in mind.

What NEXT?

Have a GREAT DIWALI TIME with your FAMILY and FRIENDS.

HAPPY DIWALI.

Follow me on Twitter @hiteshmparikh / WhatsApp -+91-9869425399.

Learn a Lesson. Live with Passion & Invest with Reason.

Hitesh Parikh.