Social Media giant, Facebook, has paid $5.7 billion for 10% stake in Jio Platforms Limited, part of India’s Reliance Industries Limited. News of the this transaction was first reported in March this year. Jio Platforms is a next-generation technology company building a Digital Society for India by bringing together Jio’s leading digital apps, digital ecosystems and India’s #1 high speed connectivity platform under one umbrella.
Owned by Indian billionaire, Mukesh Ambani, Reliance Industries Limited (RIL) is an Indian multinational conglomerate company with businesses engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
This investment makes Facebook the company’s largest minority shareholder and this is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India.
As for Facebook, this is its largest single investment in another company aside from its acquisitions.
The goal of this partnership is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector, in addition to empowering people seeking various digital services
Concurrent with the investment, Jio Platforms, Reliance Retail Limited (“Reliance Retail”) and WhatsApp have also entered into a commercial partnership agreement to further accelerate Reliance Retail’s New Commerce business on the JioMart platform using WhatsApp and to
support small businesses on WhatsApp
Commenting on the partnership with Facebook, Mr Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said, “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 in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians. The synergy between Jio and Facebook will help realise Prime Minister Shri Narendra Modi’s ‘Digital India’ Mission with its two ambitious goals — ‘Ease of Living’ and ‘Ease of Doing Business’ – for every single category of Indian people without exception. In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time. The partnership will surely make an important contribution to this transformation.”
According to Facebook’s David Fischer, Chief Revenue Officer, and Ajit Mohan, VP and Managing Director, India in a blog post,
“One focus of our collaboration with Jio will be creating new ways for people and businesses to operate more effectively in the growing digital economy. For instance, by bringing together JioMart, Jio’s small business initiative, with the power of WhatsApp, we can enable people to connect with businesses, shop and ultimately purchase products in a seamless mobile experience.”
“India is a special country for us. Over the years, Facebook has invested in India to connect people and help businesses launch and grow. WhatsApp is so ingrained in Indian life that it has become a commonly used verb across many Indian languages and dialects. Facebook brings together friends and families, but moreover, it’s one of the country’s biggest enablers of growth for small businesses. And Instagram has grown dramatically in India in recent years as the place where people follow their interests and passions.”
“With communities around the world in lockdown, many of these entrepreneurs need digital tools they can rely on to find and communicate with customers and grow their businesses. This is something we can help with — and that’s why we’re partnering with Jio to help people and businesses in India create new opportunities.” Mark Zuckerberg adds.
