The Reliance Industries Limited (RIL) and the Facebook joined hands as social media giant pumped in $5.7 billion investment in Jio Platforms Limited, part of the RIL. The deal made Facebook its largest minority shareholder. Facebook said the investment underscores its commitment to India, and its excitement for the dramatic digital transformation that Jio has spurred in the country.
In less than four years, Jio has brought more than 388 million people online, fueling the creation of innovative new enterprises and connecting people in new ways. We are committed to connecting more people in India together with Jio. India is in the midst of one of the most dynamic social and economic transformations the world has ever seen, driven by the rapid adoption of digital technologies. In just five years, more than 560 million people in India have gained access to the internet.
It is expected that coming together of two giants from very different segments will enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India. They account for the majority of jobs in the country, and form the heart and soul of rural and urban communities alike.
By bringing together JioMart, Jio’s small business initiative, with the power of WhatsApp, the deal aims to connect people with businesses, shop, and ultimately purchase products in a seamless mobile experience. This investment by Facebook values Jio Platforms at £46.2 billion pre-money enterprise value ($65.95 billion). Facebook’s investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis.
As one of the largest countries in the world, India is home to some of Facebook’s most thriving communities on WhatsApp, Facebook and Instagram. The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India. The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization, within just three and a half years of launch of commercial services, validating Reliance Industries’ capability in incubating and building disruptive next-generation businesses, while delivering market-defining shareholder value.
Concurrent with the investment, Jio Platforms, Reliance Retail Limited (Reliance Retail) and WhatsApp have also entered into a commercial partnership agreement to further accelerate Reliance Retail’s New Commerce business on the JioMart platform using WhatsApp and to
support small businesses on WhatsApp.
The companies said they will work closely to ensure that consumers are able to access the nearest kiranas, who can provide products and services to their homes by transacting seamlessly with JioMart using WhatsApp. 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 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.''
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