Facebook Buys 9.99% Stake in Reliance Jio for INR 43,574 Crore
The American Social Media and Technology Company ‘Facebook’ recently announced that they are buying a 9.99% equity stake in Jio Platforms Limited, which is a part of Reliance Industries Limited for INR 43,574 Crore. After this investment, Facebook has become Jio’s largest minority shareholder. It is the largest investment for a minority stake by a technology company anywhere in the world and is the largest foreign direct investment in the technology sector in India.
David Fischer, the Chief Revenue Officer, and Mr Ajit Mohan, VP and Managing Director India said – “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.”
This collaboration has ensured that Jio Platforms, Reliance Retail, and WhatsApp have also entered into a commercial partnership agreement that will accelerate Reliance Retail’s New Commerce business on the JioMart platform.
Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited 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 realize 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.”