Adani Group is reportedly eyeing an expansion into the e-commerce and payments space in a bid to compete with giants like Google and Flipkart-backed PhonePe.

What Happened: Adani Group Chairman Gautam Adani, Asia's second-richest man, is exploring a license to operate a UPI service and plans to launch a co-branded Adani credit card, Financial Times reported, citing sources.

The group is also reportedly negotiating to offer online shopping via the government-backed Open Network for Digital Commerce (ONDC).

If the plans come to fruition, these services will be available through Adani's consumer app, Adani One, which launched in late 2022.

See Also: Vedanta Share Price Climbs As Anil Agarwal-Owned Firm Said To Be Weighing Stake Sale

Adani's push into consumer tech comes over a year after U.S. short-seller Hindenburg Research accused it of market manipulation and fraud, leading to a $150 billion stock rout. Despite ongoing investigations, Adani’s businesses have bounced back, with shares of its flagship company recovering most of last year's losses.

Adani’s new e-commerce and payment services will initially target existing customers of its businesses, leveraging loyalty points from bill payments or duty-free purchases for online shopping. This strategy aims to provide a platform for broader expansion.

However, the group will face significant and hurdles to success in the growing digital sector. Tata Group's super app Tata Neu, which launched in 2022, has seen limited success, while Reliance has a significant head start in consumer sectors. Mukesh Ambani’s Jio Financial Services is also eyeing the UPI business and other financial products.

Read Next: LIC Share Price Upbeat After Q4 As Brokerages Remain Bullish