Table of Contents
Why is Facebook investing in Jio platforms?
Today 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. This investment underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred in the country.
What does the Facebook-Jio deal mean for India’s data localization plans?
If approved by regulators, the Facebook-Jio deal suggests that India’s data localization plans may not be absolute. It also suggests that Western tech behemoths will continue to have an important stake in India’s future. The timing of Facebook’s investment, while likely long in the works, may also be telling.
Why is Jio so successful in India?
Jio’s success in India has raised a lot of eyebrows but the biggest moment came when Mukesh Ambani invested $33 billion to construct a nationwide 4G broadband service network. This allowed Jio to offer cheaper data services and free domestic calling to its subscribers.
What is the investment cycle in Jio platforms?
The investment cycle in Jio Platforms was kickstarted by Facebook with one of its biggest equity investments in April. It was followed by other PE investors who saw value in Jio Platforms.
What is the impact of Jio on 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.
How will Facebook’s investment in Reliance Jio help Mukesh Ambani?
But Mukesh Ambani’s push for the digital revolution in India has caused him to incur enormous debts to build the telecom business. With Jio having ambitions to take on Amazon in e-commerce, provide fiber net, run data centers and set up new services like telehealth and distance learning, the investment from Facebook will greatly help Reliance.
Why did Mark Zuckerberg buy 10\% stake in Jio?
The theory here is that COVID-19 pandemic will only accelerate these protectionist concerns and by picking up a near 10\% stake in Jio, Zuckerberg appears to be buying ‘protection’ in a manner of speaking. Or at the very least, Reliance and Facebook may find more common ground when it comes to their lobbying efforts in the future.
What is the Reliance Jio-Facebook deal?
Reliance Jio-Facebook deal will help Reliance boost its new online grocery marketplace JioMart. Facebook will spend $5.7 billion for 10\% of Reliance Industries’s digital business, as the social media firm looks to leverage its popular WhatsApp messenger to offer digital payment services to small grocers in India.