Facebook’s decision to invest Rs 43,574 crore in Reliance Jio for 9.99% stake, the largest FDI in India’s technology sector, is set to be a game-changer. Reliance retail will get its customers to use their WhatsApp JioMart grocery platform to get started. Well! this is not it, the deal between Reliance and Facebook is considered as the biggest deal of the decade which will change the entire digital scenario of the country. Experts believe that Facebook’s investment in Jio will empower digital transformation in the country.
The partnership between Facebook and Jio is unprecedented in many ways. Let us tell you that this is the largest FDI in the technology sector. This is also the largest investment for a minority stake by a technology company in the world.
The investment has brought Jio amongst the top 5 listed companies in India by market capitalization. Interestingly, the company has achieved this milestone within just three and a half years of the launch of commercial services.
“Jio’s deal with Facebook is good not just for the two of them. Coming as it does during the virus-crisis, it is a strong signal of India’s economic importance post the crisis. It strengthens hypotheses that the world will pivot to India as a new growth epicentre. Bravo Mukesh!,” tweeted Anand Mahindra on this deal.
The tweet is almost enough to prove the historicity of this deal. This is just a start of a partnership which is going to be beneficial not just for both the companies but is also going to change the entire landscape of how things are going to evolve in digital India.
Seeing how digital is booming in the country, Facebook can also expand its reach to the smaller and remote cities of India. The social media giant already has an unbeatable penetration in the Tier market of India and this partnership will surely take it to the next level.
“The possibilities are endless. Future holds some great innovations in business that can be brought forward by this combination of Facebook and Jio,” believes Ranjan Bargotra, President, Crayons Communication Group.
While announcing the deal Reliance Jio stated, “In less than four years, Jio has brought more than 388 million people online, fuelling the creation of innovative new enterprises and connecting people in new ways. We are committed to connecting more people in India together with Jio.”
If we go by the above statement of Reliance Jio, this partnership will also open gates to new opportunities for eCommerce companies and will put the Indian marketing in the itinerary of most global investors.
Roopal Kaushik, President, SRS Media asserted that Facebook and Jio have opted for the right time.
Jio Mart will open up a new method of selling beyond existing eCommerce platforms like Amazon, Flipkart and Paytm, she added.
This is a big win for Facebook that has been trying to strengthen its India presence for quite some time. With the effects of COVID-19 and a lot of companies speculating to shift production base to India, this might just make India – the world’s epicentre for SMEs.
The partnership assumes special significance for India in the wake of the severe disruptions caused by the Covid-19 in the Indian as well as the global economy.
In such testing times, this deal surely turned as good news for investors. This deal will empower the digital transformation of millions which shall boost not just the digital ecosystem but also the nation. It will be easier to get on board the next 100 million internet users thanks to this deal. I am pretty sure, in the post-COVID world, the world will be closely watching India.
Considering the population, especially the young ones, India is a lucrative market for Facebook or any social media platform for that matter. Also, global companies in these times for a reasonably foreseeable future will only invest in Asia, and in the way the current situations are rolling out, India is probably the best bet. This is not Facebook’s first investment in an Indian company and it won’t be the last.
