Jio Platforms IPO: Will AI, satellite internet and next-gen technology drive Reliance Jio’s future growth? – Markets


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​JIO IPO

JIO IPO: The early success of Jio was mainly based on offering affordable data, building a network and expanding mobile internet services in India.

Jio Platforms’ Rs 30,213 crore initial public offering (IPO) was fully subscribed within hours of opening on Day 1, making it one of the fastest-subscribed mega IPOs in India. Amid this frenzy, building a digital technology ecosystem with AI, enterprise solutions and next-generation connectivity carries immense potential for the company’s future value creation.

The investment case may be moving away from subscriber growth, tariffs and traditional metrics. Analysts see Jio leveraging its digital infrastructure to expand into technology-driven businesses, with several emerging technologies becoming potential drivers of its future growth.

The early success of Jio was mainly based on offering affordable data, building a network and expanding mobile internet services in India. As the industry matures, the company will look for new ways to generate revenue using its infrastructure and existing customer base.

As Mohit Gulati, CIO & Managing Partner at ITI Alternates, pointed out, the basic infrastructure is already in place. Therefore, the next growth driver could come from future-oriented businesses such as digital applications and AI-powered services.

Mayuresh Joshi of MarketSmith India highlighted the opportunities in Jio’s B2B and small-enterprise offerings.

“The partnerships the company is exploring in terms of JioSpaceFiber, which involves low-latency satellites being launched over the next two to three years, could be significant. Moreover, There’s a lot more potential for the company with Nvidia-related AI developments and what that brings to the table,” Joshi told ET NOW.

On the other hand, Gulati believes the technology opportunity is still at an early stage.

“The expected nonlinear growth will come from the ‘future businesses’ like JioBook, JioFrames (AI-powered, hands-free smart glasses) and the whole Meta integration—what you can do in a connected ecosystem, the AI application layers, and what the network is learning on a daily basis,” Gulati told ET NOW.

“Using that proprietary AI database, taking those learnings, and going to other markets, competing with Ericsson and Nokia head-on is honestly where they’re just getting started.”

He further argued that it would be unfair to evaluate Jio Platforms solely through conventional telecom valuation multiples.

Aditya Kondawar of Complete Circle Capital echoed the broader technology-led outlook, pointing to opportunities in enterprise solutions, advertising and low Earth orbit satellite communications.

“Going ahead, telecom companies will use a lot of new-age technology. For example, Bharti Airtel and Jio are both talking about low-Earth-orbit satellites for their communication networks. Bharti seems focused on enterprise solutions as well as advertising. Both could use emerging technologies efficiently as they become commercially viable.” Kondawar told ET NOW.

The potential application of AI and new-age enterprise solutions might become a crucial factor behind Jio’s upcoming growth cycle. Such technologies can help increase operational efficiency and provide additional services to customers, but their adoption should not be seen as a guarantee of additional profits.

Jio’s future growth might hinge on how well it can capitalise on its technological investments to create commercially viable ventures. Although digital services have the potential to open up new growth avenues for Jio, operating leverage and cash flows remain key factors to consider.



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