Facebook on Wednesday has announced to invest INR 43,574 Crores on Indian’s Telecom Unit Reliance Jio. These shares worth 9.99%for the total making it the largest minority stakeholder in the country.
The motive behind the same is to collaborate Whatsapp with Reliance’s e-commerce venture JioMart to enable people to connect with small businesses around the country. Making the move when WhatsApp gets approved to enroll secured payment services to compete with Gpay and other Payment giants.
“This investment by Facebook values Jio Platforms at Rs4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs70 to a US Dollar). Facebook’s investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis”Jio said in a statement
This collaboration between Jio and Facebook will result in a massive profit to both sides as both Jio and WhatsApp have more than 80%of the total smartphone users in India.
“At the core of our partnership is the commitment that Mark Zuckerberg, founder of Facebook, and I share for the all-round digital transformation of India and for serving all Indians…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,” said Mukesh Ambani, chairman and MD of RIL in the statement.
The report says the following deal has been made to reach out to as much as small businesses in the country.