Facebook reportedly in talks with Indian conglomerate Reliance to create super app

Facebook and Indian conglomerate Reliance Industries Limited (RIL) are looking to create a WeChat-like super app that combines social, digital payments, gaming, and flight and hotel bookings, among other features, the Economic Times reported, citing four people familiar with the matter.

RIL owns large businesses in sectors such as retail (Reliance Retail), telecommunications (Jio), and digital services.

Photo credit: Viktor Hanacek

According to the report, the idea was to create a platform that enables not only communication but also grocery shopping through RIL’s retail platforms and payments via JioMoney, the conglomerate’s fintech app. The new super app would leverage WhatsApp’s platform and user base, the sources said.

The project would also see Facebook and RIL contributing funding, technical skill, and domain knowhow to the app’s development.

RIL has yet to respond to questions, while Facebook refused to comment, the report said.

The final structure of the project, which is still in the process of due diligence, is yet to be settled. “A new company could be created – where both the players could invest – or Facebook could invest in Reliance Jio and Reliance Retail, and that is the way the partnership could be formed for the new venture,” one of the sources was quoted as saying in the report.

The ongoing discussions, however, have been delayed due to the Covid-19 pandemic.

Earlier this year, it was reported that Facebook was in talks to acquire a 10% stake in RIL’s Jio, which has become a leading telco in India.

“There is going to be a collaboration, but it’s not clear how the companies will come together since a lot would depend on commercial viability and the technical knowhow both the players would bring in,” said one of the sources.