- The deal will employ JioMart and WhatsApp to help small merchants reach out to customers
- Jio and Facebook are aiming to help 60 million MSMEs, 120 million farmers, and 30 million small merchants in the future
Jio Platforms – the entity that includes the Reliance Jio Infocomm telecom business – has received a Rs 43,574 crores (around $5.7 billion) cash injection from Facebook in exchange for a 9.9 percent stake. This pegs the pre-money enterprise valuation of the Reliance Industries Limited (RIL) company at Rs 4.62 lakh crore, making it one of the top-five listed companies by market value. Moreover, the Jio-Facebook deal is the largest FDI deal in the tech sector in India. Announcing the deal, both RIL Chairman Mukesh Ambani and Facebook co-founder and CEO Mark Zuckerberg said the companies will work towards bringing about a digital transformation for millions of Indians and small businesses.
Ambani released a video statement, wherein he said “The combined power of Jio’s world-class digital connectivity platform and Facebook’s intimate relationship with the Indian people will offer innovative new solutions to each one of you. In the very near future, JioMart – Jio’s digital new commerce platform – and WhatsApp will empower nearly 3 crore small Indian kirana shops to interact with every customer in their neighbourhood.” You can watch the full video below:
Zuckerberg, in a statement posted on his Facebook Wall, said “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.”