BIG BUSINESS MOVE BY FACEBOOK, IT INVESTS RS. 43,574 CRORE IN RELIANCE INDUSTRIES’ JIO: HERE IS HOW INDIA WILL BENEFIT FROM THIS NEW PARTNERSHIP

Whatsapp, a messaging application by Facebook has more than 400 million users in India which is more than any other country in the world. Hence, Facebook had engraved its primary footprint in the country. However, it has now entered the Indian market through a new venture by investing in Jio Platforms, the tech subsidiary of multinational conglomerate Reliance Industries.

Facebook’s investment gives it around a 9.99 per cent stake in the company, making it the largest minority shareholder.

Jio which operates broadband, mobile services, and online commerce platforms and Facebook in separate statements have mentioned that together they will create various commerce options for India.

"Reliance Industries Limited, Jio Platforms Limited, and Facebook, Inc. today announced the signing of binding agreements for an investment of Rupees 43,574 crore by Facebook into Jio Platforms. This investment by Facebook values Jio Platforms at Rupees 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rupees 70 to a US Dollar). Facebook’s investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis,” RIL said in a statement on Wednesday.

“This is especially important right now because small businesses are the core of every economy and they need our support. India has more than 60 million small businesses and millions of people rely on them for jobs. 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,” he said. “We're looking forward to getting started,” Zuckerberg said in a Facebook post.

The main focus of the deal is to come up with digital solutions for micro, small and medium businesses in both the formal and informal sector, farmers, small merchants, and so on.