Facebook Inc.- Reliance Jio Big Step Into Online Digital Payment.



Facebook, world's largest social media company, recently invested $5.7 billion for a 9.99% stake in Reliance Jio Platforms. Experts see this as an opportunity for both companies to tap into the digital payments market while also promoting blockchain innovation in India.


With Facebook-Jio deal, BSC seen a jump in RIL. (Reliance India Limited) to 10.3% closing at 1,363.35 Rupees, which is more than 12% in Intraday. This made the valuation of RIL of 4.62 lakh Crore ($60.42 billion).

Jio Platforms phone and data unit Reliance is the parent company of Jio Infocomm and various digital app platforms such as JioMart, Jio-Saavn and JioCinema. Jio's strategy head Anshuman Thakur said on a conference call with reporters that Facebook will get a seat on the board of the Jio platform.

Chairman of Reliance industries given a detailed statement about Facebook - Jio merger.



Facebook said, "This investment underscores our commitment to India, and our enthusiasm for the dramatic changes Jio has made in the country." In less than four years, Jio has brought more than 388 million people online, promoting the creation of innovative new ventures and connecting people in new ways.

We will work to connect more people in India with Jio. Our goal is to enable new opportunities for businesses of all sizes, but especially to promote more than 60 million small businesses across India. ”

The two companies said in separate statements on Wednesday that Jio Platforms, Reliance Retail and WhatsApp have signed a commercial agreement for cross-leveraged ecommerce platforms JioMart and WhatsApp.

 Reliance Retailis a retail unit of RIL. RIL has in recent months stepped up efforts to reduce debt by attempting to sell a billion-dollar stake in some of its businesses.
It is in talks with Saudi Aramco for a stake in its telecom tower business to sell 20 percent of its oil chemical business and Canadian private equity firm Brookfield Asset Management.

The Facebook deal is now the centerpiece of India's largest private company ambitions, which will see their debt reduced to zero by March 2021. For Facebook, India has emerged as an important market in recent years. The company has more users in India than any other country. Its Whatsapp service, which has attracted 340 million users and is about to launch an important payment service, will be like Paytm, Google Pay, PhonePe and Amazon Pay.



RIL Chairman and Managing Director Ambani said, the partnership with Facebook will contribute significantly to India's economic recovery and revival in the post-Corona era. He added, "All of us at Reliance have the opportunity to welcome Facebook as our long-term partner to develop and transform India's digital ecosystem."

In a statement, Mukesh Ambani said, "At the core of our partnership is the commitment of Facebook founder Mark Zuckerberg, and I share India's all-round digital transformation and to serve all Indians… in the post-Corona era, I am confident of India's economic recovery and will also help in the resurgence in the shortest time possible ”.

The deal also comes at a time when some analysts believe that with oil prices falling, RIL is at increased risk of a deal to sell the stake to Aramco for $ 75 billion.

For any query mail us @[email protected]

Post a Comment

0 Comments