- Facebook announces to invest in $5.7 billion in Reliance Jio Platforms making it the biggest FDI in India’s technology market.
Facebook has revealed the signing of agreements to invest $5.7 billion in the Reliance Jio Platforms of Mukesh Ambani. It is the biggest FDI in India’s technology market.
Investment from Facebook would turn into a completely diluted 9.99 percent equity interest in Jio Platforms. Reliance Industries Limited’s wholly-owned subsidiary Jio Platforms provides Reliance Jio and other wireless applications. Reliance Jio Infocomm Limited provides more than 388 million customers with a communication platform
“India is a special country for us,” Facebook said on Jio Deal. “Facebook has invested in India on the basis of a deep belief in India’s entrepreneurial potential and ability to help create a positive impact for Indians and Indian companies leveraging their multiple platforms. The Facebook-Jio relationship is, in many ways, groundbreaking. It is the biggest investment by a technology firm anywhere in the world for a minority stake and the biggest FDI in India’s technology market, “a press release said.
The investment ranks Jio Platforms by market capitalization among the top five listed companies in India, within just three and a half years of commercial services launch.
“With this investment, we aim to create new opportunities for businesses of all sizes, but especially for small businesses across India, and to build new and exciting digital ecosystems that will inspire, enrich and uplift the lives of all 1.3 billion Indians. This partnership would speed up the all-round growth of India, fulfilling the needs of the Indian people and the Indian economy, “Reliance said in a statement.
“We will concentrate on India’s 60 million micro, small and medium-sized enterprises, 120 million farmers, 30 million small businesses and millions of small and medium-sized enterprises in the informal sector, in addition to empowering people seeking different digital services,” he added.
Around the same time as the investment, Jio Platforms, Reliance Retail Limited, and WhatsApp have signed a strategic collaboration agreement to further accelerate the New Commerce sector of Reliance Retail on the JioMart platform using WhatsApp and to help small businesses on WhatsApp.
The firms will work closely to ensure customers can reach the nearest Kirana who can deliver goods and services to their homes via seamless transactions with JioMart using WhatsApp.
Commenting on the partnership with Facebook, Reliance Industries Ltd., Chairman, and Managing Director Mukesh Ambani said, “All of us at Reliance are therefore humbled at the opportunity to welcome Facebook as our long-term partner in continuing to develop and transform India’s digital ecosystem for the benefit of all Indians.
The synergy between Jio and Facebook will help to realize the ‘Digital India’ project of Prime Minister Shri Narendra Modi with its two ambitious goals – ‘Ease of Living’ and ‘Ease of Doing Business’ – for every group of Indian citizens without exception.
The deal is subject to customary regulatory and other approvals. Morgan Stanley as Financial Consultant and AZB & Partners and Davis Polk & Wardwell as Transaction Advisors
