Reliance-owned Jio Platforms and Facebook announced the signing of binding agreements for an investment of ₹ 43,574 crore by Facebook into Jio Platforms. This investment by Facebook values Jio Platforms at ₹ 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 partnership between Facebook and Jio is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India.
The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization, within just three and a half years of the launch of commercial services, validating Reliance Industries’ capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value.
The partnership assumes special significance for India in the wake of the severe disruptions caused by the coronavirus pandemic in the Indian — and the global — economy. In the post-COVID era, comprehensive digitalisation will be an absolute necessity for revitalisation of the Indian economy. It is our common belief and commitment that no Indian should be deprived of the tremendous new opportunities, including opportunities for new employment and new businesses, in the process of India’s 360-degree digital transformation.
India is home to the largest communities on Facebook and WhatsApp, and a lot of talented entrepreneurs. The country is in the middle of a major digital transformation and organizations like Jio have played a big part in getting hundreds of millions of Indian people and small businesses online.
This is especially important right now, because small businesses are the core of every economy and they need our support. India has more than 60 million small businesses and millions of people rely on them for jobs.
With communities around the world in lockdown, many of these entrepreneurs need digital tools they can rely on to find and communicate with customers and grow their businesses. This is something we can help with — and that’s why we’re partnering with Jio to help people and businesses in India create new opportunities.
I want to thank Mukesh Ambani and the entire Jio team for their partnership. We’re looking forward to getting started.”
Here is a direct message from Mukesh Ambani on this deal:
— Faiz Askari (@faizaskari) April 22, 2020
And here is Mark Zukerberg Explaining the investments in Reliance Jio
? Mark Zuckerberg On Deal With #RelianceJio Worth Rs 43,574 Crore
?️India Has More Than 6 Crore Small Business Which Will Get Tools & New Ways To Communicate So That They Can Grow
?️Small Businesses Are At The Core Of Any Economy pic.twitter.com/lIRSrTzgb7
— Arun Sharma (@ArunSharmaLive) April 22, 2020