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Facebook To Invest $5.7 Bln In India's Reliance Jio

facebookjio april22 lt

Facebook, Inc. signed an agreement to buy 9.99 percent stake in India-based Jio Platforms Ltd., owned by billionaire Mukesh Ambani's Reliance Industries Limited.

The social media giant will make an investment of 43,574 crore Indian rupees or about $5.68 billion into Jio, which owns the country's top connectivity platform Reliance Jio Infocomm Ltd with over 388 million subscribers.

Reliance Industries noted that Facebook's investment in Jio is the largest ever for a minority stake by a technology company worldwide. It is also the largest Foreign Direct Investment or FDI in the technology sector in India.

With the planned investment, Jio Platforms is now valued at $65.95 billion pre-money enterprise value. The transaction is subject to regulatory and other customary approvals.

Jio, Reliance Industries' next-generation technology company, provides Broadband connectivity, Smart Devices, Cloud and Edge Computing, and other technologies to create a Digital India, especially for small merchants, micro-businesses and farmers.

In a blog post, Facebook said its goal is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India.

Ambani, Chairman and Managing Director, Reliance Industries, said, "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."

Along with the deal, Jio, Reliance Retail Limited and WhatsApp, owned by Facebook, entered into a commercial partnership deal. Under the deal, JioMart platform, Jio's small business initiative, will be further accelerated using WhatsApp.

With the investment, Jio Platforms, which was launched in 2016, will be amongst the top 5 listed companies in India by market capitalization.

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