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Unlocking the Future – Newsletter by Flamingo Consultancy Group

By Saurin Shah on Jun 15, 2020
Category: News & Updates | Country:  All Over the World


Today’s News letter will deal with an important topic focusing Reliance Jio deals with various international investors and how they may capitalize their investment going forward in India & some Global News in Covid-19.

We begin with certain basic data as that has turned to be the backbone of the international investors to pour into Reliance Jio.

  • India is the fastest growing internet market with 65 Bn of our 135 Bn people using it, the 2nd biggest in the world.
  • The covid-19 pandemic and accompanying lockdown have propelled a dramatic upward usage in digital services consumption in India. It is estimated that the accretion that would have taken 5 years for the surge have happened in just little more than 3 months.
  • Messages platform of whatsapp has 2 Bn users worldwide, i.e. 25% of the world population and still Face Book, the owner of Whatapp platform unable to monetize the same significantly. FB bought whatsapp couple of years back by spending around U S $ 16 Bn.
  • India does have 45 Bn whatsapp users and to analyze, 22.5% of worldwide users from India alone. With this large users concentrated in India, FB got tempted to capitalize our country’s transformation to moving to digitalization and that’s how they poured into Reliance Jio and rest of big investors chasing this with a sense of not left behind the curve.
  • FB’s deal with Jio is intended to set things right by transforming whatsapp into a market type platform.
  • Whatsapp could now be transiting beyond an application into a platform with commerce and transaction (payment) becoming an integral part to its strategy, besides communication.
  • FB, with a focus on 2 core areas to monetize their plans, via payments and commerce, along with higher Ad revenues and online ordering of groceries, medicines and what not.
  • Reliance and FB foresee manifold growth in both the above core areas, they estimate Indian market size to reach U S $ 2 trillion in next five years which is compared to India’s last year GDP size.

Image source: Trust Pulse

  • We are compelled to believe that both Google and Amazon could be looking to fortify their positions by partnering with other Telco with an intention of not missing the bus. In a scenario in which RIL-Jio & FB monetization gains traction, or the FOMO ( fear of missing out ) factor.
  • Latest buzz, Apple Inc- I phone manufacturer is also looking to expand its transaction ecosystem in India. Let’s see with whom they decide to marry.

Global Covid-19 News

Let’s  now move onto something from the global front.

  • CORONA’s 2nd wave has sent waves of shivers among the globe; many western and Asian countries have become the hotspot for the 2nd wave.
  • As per recent estimate, nearly 120 research agencies are pursuing COVID vaccine, their research are at various level of experiment but world has yet to hear pleasing and relaxing news.
  • Jhonson and Jhonson is latest in the news on COVID vaccine, they are accelerating trials of its vaccine on human beings as early as next month as stated by its chief scientific officer.
  • Singapore economy may completely reopen by the end of June, may be a satisfying news for many businesses in the world.
  • German government proactively reducing VAT for a period of 6 months beginning 01/07/2020, valid till 31/12/2020, from 19% to 16% and fro groceries and some other day-to-day use items from 7% to 5%, in a bid to support the demand returning back in the economy, a move India will have to think to support their 135 cr population.

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Saurin Shah
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