Facebook buys stake in Jio platforms

Advertisements

Announcing an investment of ₹43,574 crores ($5.7 billion) by Facebook into Jio Platforms, Reliance Industries and Facebook signed binding agreements. The collaboration between Facebook and Jio is unprecedented in several ways.

Jio and @Facebook partner to create opportunities for people and businesses.#WithLoveFromJio #Jio #Facebook #MarkZuckerberg #RelianceJio #JioDigitalLife pic.twitter.com/dMlW5TT4QF

— Reliance Jio (@reliancejio) April 22, 2020

Surprisingly, this is the largest investment for a minority stake (9.9%) by a tech firm anywhere in the world.

It is worth noting that it is the largest FDI in the technology sector in India.

“When Reliance launched Jio in 2016, we were driven by the dream of INDIA’S DIGITAL SARVODAYA . India’s Inclusive Digital Rise to improve the quality of life of every single Indian. And to propel India as the world’s leading Digital Society. All of us at Reliance are therefore humbled by the opportunity to welcome Facebook as our long-term partner. It will help in growing and transforming the digital ecosystem of India for the benefit of all Indians,” said Mukesh Ambani.

Shri Mukesh D. Ambani, Chairman, Reliance Industries Limited welcomes Mark Zuckerberg, founder @Facebook Inc as a long term and esteemed partner.#WithLoveFromJio #Jio #Facebook #MarkZuckerberg#MukeshAmbani #RelianceJio #JioDigitalLifehttps://t.co/RoHrxUpxZF

— Reliance Jio (@reliancejio) April 22, 2020

Leading companies and their enormous users :

Reliance Jio, a telecom unit, has a base of 388 million subscribers currently. Yet it will continue to remain a wholly-owned subsidiary of Reliance Platform.

In addition to this, Facebook said the deal underscores its commitment to India.

With around 328 million monthly users, India is the biggest market for Facebook, while WhatsApp messaging app has 400 million users in the country.

Facebook’s efforts with Jio will focus on opening new doors, stimulating India’s economic growth and the prosperity of its people.

Facebook owns platforms such as WhatsApp and Instagram. In 2012, Facebook acquired photo and video-sharing platform Instagram for $1 billion, while the text messaging company WhatsApp was acquired in 2014.

The tech giant will get an unprecedented foothold in the fast-growing market with this deal. This deal is part of value unlocking by RIL to cut its debt. RIL has been seeking strategic partnerships across the world while targeting to deleverage its balance sheet. Reportedly, RIL has been in talks Saudi Aramco for the sale of a 20% stake in its oil-to-chemical business. RIL has already tied up with BP Plc for fuel business as it targets to have a debt-free status by next year.

Lured by the sheer size of the Indian market and the rapid adoption of digital technologies, tech companies are investing heavily in India in recent years.

Leave a Comment