Rs 43,574 Crores! Facebook Invests In Reliance Jio

Representational Image - Sakshi Post

For the first time, US tech giant Facebook on Wednesday announced that it is going to buy a 9.99% equity stake in Mukesh Ambani's Reliance Jio for Rs. 43,574 crore. This is the largest foreign direct investment for technology in India. Facebook in a statement told that, "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."

Jio Platforms, a wholly-owned subsidiary of Reliance Industries Limited is one of India's fastest-growing telecom networks in the countries. With just 4 years, Jio has more than 388 million customers in India.

The Reliance Industries Limited released a statement that, “Binding agreements for an investment of Rs 43,574 crore by Facebook into Jio Platforms. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value. Facebook's investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis."

The company in its statement told that, "Our goal with this investment is to enable new opportunities for businesses of all sizes, but especially for small businesses across India and create a new exciting digital ecosystem that will empower, enrich and uplift the lives of all 1.3 billion Indians."

Facebook and Reliance have also agreed to let Reliance Retail use WhatsApp as a part of its business. WhatsApp and Instagram are also owned by Facebook.

Facebook co-founder and CEO, Mark Zuckerberg told that, India is home to the largest communities on Facebook and WhatsApp and it is in the middle of a major digital transformation. He further added that, India also has a lot of talented entrepreneurs and organisations like Jio have played a big part in getting hundreds of millions of Indian people and small businesses online.

Jio has built a world-class digital platform powered by leading technologies such as Broadband connectivity, Smart Devices, Cloud and Edge Computing, Big Data Analytics, Artificial Intelligence, Internet of Things, Augmented and Mixed Reality and Blockchain.

The partnership of Facebook and Reliance Jio assumes special signifciance for India in the wake of severe disruptions caused by the coroanvirus pandemic in the Indian and the global economy. In the post COVID era, comprehensive digitilasiton will be an absolute necessity fo revitalisation of the Indian economy.

Also Read: Rs 50k Crore Special Finance Facility For NABARD, SIDBI, NHB: RBI Gov

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