Mark Zuckerberg’s tech giant company Facebook has declared the signing contracts for a huge investment of ₹ 43,574 crores into Reliance Jio, the company owned by Mukesh Ambani. This investment by the tech giant values Jio Platforms at ₹ 4.62 lakh crore pre-money business value or $65.95 billion. This is the biggest foreign direct investment in the technology sector in India.
This investment will turn into a 9.99% equity stake in Reliance Jio Platforms on a completely diluted basis. Reliance Jio, a wholly-owned subsidiary of RIL (Reliance Industries Limited), includes Reliance Jio and other online apps. The company provides a connectivity facility to more than 388 million subscribers.
In a press statement, it was said that the tech biggie “Facebook has invested in Reliance Jio based on a powerful belief in India’s entrepreneurial ability and opportunity, to help build significant impact for Indians and Indian companies using their numerous platforms.
The partnership between both companies is fantastic in many ways. This is the greatest investment for a minority stake by a tech organization anywhere in the world and the biggest FDI in the tech sector in India.
The value of the Reliance Jio platforms is among the top five listed businesses in India by market capitalization, and that too when the commercial services were launched around four years ago.
In a press-conference Reliance said, “Our purpose with this investment is to empower new opportunities for businesses of all areas, but particularly for small companies across India and build new and engaging digital ecosystems that will enable, enrich and uplift the lives of all Indian citizens. This bond will accelerate India’s all-round development, fulfilling the requirements of Indian people and the Indian economy.”
Reliance and Facebook will also work jointly to guarantee that people can access the nearest general and small stores that can provide products and services to their homes by transacting seamlessly with JioMart with help of WhatsApp.