Facebook buys 9.99% stake in Reliance Jio platform
Facebook's investment translates into a 9.99% of the equity stake in Jio on a fully diluted basis.
Facebook has announced the investment of Rs. 43,474 crores in Reliance Jio for 9.99 percent stake on April 22. It is the largest Foreign Direct Investment (FDI) in India’s tech sector.
The announcement of signing a binding agreement for an investment of Rs. 43,474 crore was made by Jio Platform Ltd, Reliance Industries Ltd., and Facebook.
As per a statement by Reliance Industries Ltd., the investment by Facebook translates into 9.99% of the equity stake in Jio on a fully diluted basis. The declared investment now values Jio Platforms at Rs. 4.62 lakh crore pre-money enterprise value.
Statement by Mukesh Ambani on the announced investment:
Chairman and Managing Director of Reliance Industries Ltd., Mukesh Ambani commented on the partnership with Facebook stated that since the launch of Jio in 2016, the platform was driven by the dream of India’s Digital Sarvodaya which aims at improving the quality of life of every citizen and to make India as world’s leading digital society.
He also mentioned that the cooperation between Reliance and Facebook will help in achieving Prime Minister Narendra Modi’s Digital India Mission with its two goals of ‘Ease of doing business’ and ‘ease of Living’.
Mukesh Ambani also further identified the need for comprehensive digitalisation for the revival of the Indian economy in a post-Corona era and how the partnership between Jio and WhatsApp will give an important contribution to the revival of the economy.
Facebook’s Investment in Jio: Key Highlights:
• Reliance retail ltd., Jio platform and WhatsApp are also coming together in a commercial partnership. It will accelerate Reliance's new commerce business on the Jio mart platform and support small businesses on WhatsApp.
• Facebook’s investment in Jio has placed the company among the top 5 listed companies in India within just three and a half years of its launch.
• As Facebook’s most established communities WhatsApp, Instagram, and Facebook are already in India, the announced deal with Jio will allow it to place itself deeper in the Indian market.
The goal of an announced partnership between Facebook and Reliance:
• The investment will introduce new opportunities to businesses of all sizes. It will particularly be beneficial for small businesses across India by enriching the digital ecosystem that will empower citizens of India.
• It will further accelerate India’s all-round development.
• The focus will be on India’s 60 million micro, small and medium businesses, 30 million small merchants, 120 million farmers and millions of medium and small enterprises in the informal sector and empowering them with digital services.
• The partnership between Facebook and Reliance will also help in overcoming the disruptions in the Indian economy caused by COVID-19.
About Reliance Jio Platform:
Jio Platform is a wholly-owned subsidiary of Reliance and aims at building a digital society for India. The platform provided connectivity to over 388 million subscribers.
Its vision is to enable a digital India for 1.3 billion Indians and their businesses, focusing especially on small merchants, farmers, and micros-businesses. It has undoubtedly bought transformational changes in Indian digital services.
The world-class digital platform has been built by Jio which is powered by leading technologies such as smart devices, Broadband connectivity, Big data analytics, Cloud and Edge computing, Artificial Intelligence, Augmented and mixed reality and blockchain.
For every Indian to experience Jio digital life, it has created an ecosystem that comprises a network, applications, devices, contents, and affordable tariffs.