Facebook purchased a 9.9 percent stake in the Indian Telecom Behemoth Reliance Jio for the price of whopping 5.7 Billion Dollars, which is close to 43, 574 Crores Indian Rupees. The telecom giant is owned by Reliance Industries which is one of the largest business groups in India.
Reliance JIO has revolutionized the telecom offerings in India by providing internet and calling services at the dearth low prices.
Facebook Ropes In 9.9 Percent Stake in Reliance JIO
Facebook accomplish this deal to tap the extensive marked in India along with enabling Reliance Industries to get over the mounting debts.
Most significant FDI in tech in India for a minority stake
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Reliance Industries Limited said in an announcement that this is one of the most significant investments which a Technology enterprise has made in a smaller stake ever in the world. The deal is the most significant FDI in the etch in India as of now. With this deal, JIO becomes one of the top five companies in the market capitalization.
Facebook Highlighted its commitment to India
“This investment underscores our commitment to India and our excitement for the dramatic 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 a crucial market for Social Media Giant
Facebook has the most significant number of members from India, thus making the country one of the most critical markets for the social media giant. Also, WhatsApp Chat App is highly used in India with close to 350 Million users.
Deal Beneficial for Facebook as It is set to launch its payment services
Now since Facebook is also set to launch its payments service, the country with a large population of technology users can be highly significant for the company to expand its services.
Facebook also noted that its focus is to help people operate with efficiency
“One focus of our collaboration with Jio will be creating 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.”