Facebook invests $5.7 billion into Indian’s internet giant Jio

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Facebook invests $5.7 billion into Indian’s internet giant Jio. Facebook has purchased a major stake in India by investing $5.7 billion into Jio Platforms {Indian internet provider), the tech subsidiary of multinational conglomerate Reliance Industries. Jio variously operates broadband, mobile services, and online commerce platforms, and Facebook’s investment gives it around a 10 percent stake in the company, making it the largest minority shareholder.

The investment will value Jio Platforms – a digital apps platform – at Rs 4.62 lakh crore. The deal with help Mukesh Ambani-owned RIL reduces debt further and allow the Mark Zuckerberg-led company to get a stronger foothold in what is the US major’s largest market.

Both companies, in separate statements, said that they will work together on some major projects that will open up commerce opportunities for people across India.

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“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,” Fischer and Mohan write. “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.”

The oil to telecom business house also said.
“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,”

“We are excited about growing our investment in India’s vibrant digital economy,” Fischer and Mohan write. “Our efforts with Jio will be channeled on opening new doors and growing India’s economic growth and the prosperity of its people. We look forward to working with Jio, and to future collaborations in India to advance this vision.”

See also: Facebook To Launch Gaming App To Take On Twitch, YouTube

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