In a massive development, Facebook on Wednesday announced an investment of USD 5.7 billion (Rs 43,574 crore) for acquiring a 9.99% minority stake in Jio Platforms.
The investment of Rs 43,574 crore by Facebook into Jio Platforms 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, as per the Reliance statement. Facebook’s investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis. The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization, within three and a half years of the launch of commercial services, at about $65 Billion.
The partnership between Reliance Industries Limited's (RIL) Jio Platforms and Facebook aims to enable new opportunities for businesses of all sizes, but especially for small businesses across India and create new and exciting digital ecosystems that will empower, enrich and uplift the lives of all 1.3 billion Indians."
A statement by the Reliance said, "Jio Platforms, a wholly-owned subsidiary of Reliance Industries Limited, is a next-generation technology company building a Digital Society for India by bringing together Jio’s leading digital apps, digital ecosystems and India’s #1 high-speed connectivity platform under one umbrella. Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms."
"Jio’s vision is to enable a Digital India for 1.3 billion Indians and Indian businesses, especially small merchants, micro-businesses and farmers. Jio has brought transformational changes in the Indian digital services space and propelled India on the path towards becoming a global technology leader and among the leading digital economies in the world," the statement added.
Concurrent with the investment, Jio Platforms, Reliance Retail and WhatsApp (Facebook entity) 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. JioMart is taking onboard millions of small merchants including small scale Kirana shops to empower them to reach Indian consumers.