Reliance Jio takes on Airtel, Voda with 100% cashback on Rs 399 recharge

Reliance Jio on Thursday introduced a variety of discounts for its prepaid subscribers, including triple cashback of up to Rs 2,599 on every recharge of Rs 399 or above.

The triple cashback offer includes 100 per cent cashback vouchers of Jio worth Rs 400 on every Jio tariff plan recharge of Rs 399 or above and an instant cashback of up to Rs 300 on every recharge. The vouchers will include discounts at travel portals and retail stores.

While there was no reply to queries sent to Jio, its channel partners on condition of anonymity said the prime membership customers will get a cashback and vouchers for certain recharge amounts through wallets, including leading digital payment wallets like AmazonPay, AxisPay, FreeCharge, Mobikwik, Paytm and PhonePe.

The exclusive Jio Prime benefits will be available during the offer period from November 10-25, 2017.

The cashback redemption availability will have three categories:

• Jio cashback vouchers worth Rs 400, which include eight vouchers of Rs 50 each will be provided instantly in MyJio for redemption from November 15, 2017

• Instant cashback from partner wallets will be credited to user wallets instantly 

• E-commerce vouchers of up to Rs 1,899 for shopping on e-commerce platforms and discounts on flight tickets will be available from November 20, 2017 onwards on specific portals 

Jio Prime membership numbers ring in summer surprise for Reliance investors

The Street has welcomed the strong customer response to Reliance Jio’s offer and the company’s plan to extend its Prime offer by 15 days. As analysts were anticipating Jio to retain 50-60 million customers after the end of its free period, the Prime membership number of 72 million customers also surprised the Street. Reliance Industries Ltd (RIL), whose subsidiary is Jio, ended at Rs 1,371.20 on BSE.

This extension will help the company increase its telecom subscriber base from 72 million to its target of 100 million, say analysts. Further, subscribers to the Rs 149 plan have got additional time to migrate to the upgraded Rs 303 plan, which should lead to a higher base of Prime subscribers. The extended period, according to analysts at CLSA, allows for gradual transiting from free to paid services and further cement high-data usage habits.

Jio, they add, could have well over 100 million paid subscribers by March 2018, which could drive an upgrade to the earnings estimate for FY19 and rerate the stock (RIL) significantly.

There are, however, some concerns. The first is delay in monetisation on the back of significant upfront investments, given the three more months of complimentary service, while the other is the indication that the ‘Summer Surprise’ offer is the first of many surprises for RJio’s Prime subscribers. (READ MORE)