Technology giant Facebook has invested in India’s largest mobile service provider ‘Reliance Jio‘. The social media platform would be buying close to 10% stakes into various platforms of Jio. An Investment that would be highest by any firm to buy a minority stake in another firm.
In terms of value, the deals cost a whopping Rs 43, 574. The investment is also the biggest FDI (Foreign Direct Investment) in India’s technology sector firm. Soon after the announcement of the deal the shares of the Reliance group jumped by over 8%.
A statement was released by Mukesh Ambani and Mark Zuckerberg separately where the two firms committed to working together on some major projects. Those projects would open up commerce opportunities for people across India. “
“Reliance Industries Limited (RIL), Jio Platforms Limited, and Facebook, Inc. today announced the signing of binding agreements for an investment of Rs 43,574 crore by Facebook into Jio Platforms”, read RIL’s statement on Wednesday.
“At the core of our partnership is the commitment that Mark Zuckerberg, founder of Facebook, and I share for the all-round digital transformation of India and for serving all Indians…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“, said Mukesh Ambani, chairman, and MD of RIL
#RelianceJio #Facebook Deal— StockTalk (@stocktalk_in) April 22, 2020
? Facebook has invested $5.7 billion (Rs 43,574 crore) in Jio
? Facebook will own 10% stake
? Jio now valued at ₹4.5 lakh crore
✅ Facebook will get a market entry in India
✅ Reliance Jio will be able to cut its debt pic.twitter.com/kONioS6aaB
“In the very near future, JioMart – Jio’s digital new commerce platform, and Whatsapp – will empower nearly 3 crores small Indian Kirana shops to digitally transact with every customer in their neighborhood. This means all of you can order and get faster delivery of day-to-day items, from nearby local shop“, added Mr. Ambani.
The idea behind the partnership is to come up with digital-based solutions for 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector.