New Delhi: Facebook on April 22 announced that it was investing $5.7 billion in Reliance Jio.
“Today we are announcing a $5.7 billion, or INR 43,574 crore, investment in Jio Platforms Limited, part of Reliance Industries Limited, making Facebook its largest minority shareholder,” Facebook wrote in a press release.
The company said that as a part of the investment Facebook said that it would collaborate with Jio to create new ways for people and businesses to operate more effectively in the growing digital economy. “For instance, by bringing together JioMart, Jio’s small business initiative, with the power of WhatsApp, we can enable people to connect with businesses, shop and ultimately purchase products in a seamless mobile experience,” Facebook wrote in a press release.
Here are top five things that you should know about the collaboration:
1. Facebook’s investment translates into a 9.99% equity stake in Jio platform on a fully diluted basis. This is the largest investment for a minority stake by a tech company in an Indian firm.
2. This is also the largest foreign direct investment (FDI) for a minority investment in India.
3. Focus on small and micro businesses: As a part of the partnership, the two companies will focus on 60 million micro, small and medium businesses in India. This includes nearly 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector. The two companies will also work closely to ensure that consumers are able to “access the nearest kiranas who can provide products and services by transacting seamlessly with JioMart using WhatsApp.”
4.WhatsApp Reliance Retail: In addition to the investment, Jio Platforms, Reliance Retail and WhatsApp have entered into a partnership to “accelerate Reliance Retail’s New Commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp.”
5. The latest collaboration valuates Jio $65.95 billion.