Facebook invests $5.7 billion in Indian giant, Jio

Facebook has made its biggest single investment by acquiring a 9.99 per cent stake in Indian digital giant, Jio Platforms, a Reliance Industries subsidiary.

The deal, which will require competition regulatory approval, is worth an astronomical fee of $5.7 billion – A huge move, which will commit Facebook’s presence in India.

Announcing the deal, Mark Zuckerberg, Facebook’s chief executive said, “The country is in the middle of a major digital transformation, and organizations like Jio have played a big part in getting hundreds of millions of Indian people and small businesses online.”

He further stated, “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.”

David Fischer, Facebook’s chief revenue officer, and Ajit Mohan, Facebook’s managing director in India added, “By bringing together JioMart, Jio’s small-business initiative, with WhatsApp, we can enable people to connect with businesses, shop and ultimately purchase products in a seamless mobile experience.”

Commenting on the partnership with Facebook, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, 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 realise 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.”

Many in the industry have welcomed Facebook’s move with such a strategic investment during this troubled time in the global economy.