Social media giant Facebook and Telecom heavy-weight Reliance Jio have just announced a significant deal. According to the announcement, Facebook is buying about a 9.99 percent stake in Reliance Jio. As part of the stake purchase, Facebook just signed a deal to invest about Rs 43,574 crore in Jio Platforms. The announcement also shared some details regarding the agreement including information about Jio Platforms. For some context, Jio Platforms is a Reliance Industries Limited subsidiary focused on next-generation technology. It brings together all the Reliance Jio digital apps, digital ecosystems, and high-speed connectivity platform” under one entity. Let’s check out the details regarding the deal here.
Facebook to invest in Reliance Jio; details
The announcement clarified that Reliance Jio Infocomm Limited comes under Jio Platforms. It rightfully calls the partnership between both the companies “unprecedented” in terms of size. The deal is also likely “the largest investment for a minority stake by a technology company anywhere in the world”. In addition, it is also the largest FDI in the Indian technology sector. Reliance also revealed that it aims to offer “new opportunities” to businesses of all sizes across India. It also revealed that this partnership will “accelerate India’s all-round development” while fulfilling the needs of the Indian economy.
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Reliance plans to serve about 60 million “micro, small, and medium businesses” along with 120 million farmers, and more. It will also focus on 30 million small merchants and “millions of small and medium enterprises in the informal sector”. Reliance also notes that this deal has kept the destruction and disruption caused by coronavirus pandemic. The company believes that a “comprehensive digitalization” will be essential to kick-start the Indian economy.
In addition to the investment, Reliance Retail Limited has also inked a “commercial partnership agreement” with WhatsApp to push its “New Commerce Business” on the JioMart platform. This will allow ensure that Whatsapp can support countless small businesses, merchants, and Kirana shops. Reliance and Facebook will work together to ensure that consumers can access the nearest Kirana stores with JioMart and WhatsApp.
Other details
The company clarified that this transaction is yet to get regulatory approval. Reliance Industries Limited Chairman and Managing Director, Mukesh Ambani issues a statement commenting on the partnership. Ambani added, “When Reliance launched Jio in 2016, we were driven by the dream of INDIA’S DIGITAL SARVODAYA.”. He went on to add, “All of us at Reliance are therefore humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians.
Facebook founder and CEO Mark Zuckerberg also issued a statement as part of the announcement. Zuckerberg added, “Facebook is joining forces with a new partner in India. We are making a major financial investment. We are becoming the largest minority shareholder in Jio Platforms.” He also stated, “India is home to the largest communities on Facebook and WhatsApp and a lot of talented entrepreneurs. The country is in the middle of a major digital transformation and organizations like Jio have played a big part in getting hundreds of millions of Indian people and small businesses online.”
