Facebook, the social media conglomerate has entered into a JV with Reliance Jio, the oil to Digital Indian top giant. This is indeed breaking news. The world’s top-notch corporates coming together will boost Indian economy post the coronavirus pandemic exit scenario.

Facebook has bought a 9.9% stake in Reliance Jio for $ 5.7 billion (Rs. 43,574 crore) in a deal with the telecom unit of Reliance Industries Ltd. (RIL) that gives the social media giant a firm foothold in a fast-growing massive market. The deal values Jio at Rs 4.62 lakh crore ($65.95 billion). 

The Benefits from this deal for RIL, Facebook & Small Business Owners in India:

• This deal will help the Indian Oil-to-telecom conglomerate RIL to significantly cut debt.
• Facebook has bought a 9.9% stake in Reliance Jio for $5.7 billion (Rs 43,574 crore), the telecom unit of Reliance Industries Ltd (RIL) in a deal that gives the social media giant a firm foothold in a fast-growing massive market like India.
• There are whole lot of smaller companies and Industries which will reap a rich harvest. The key part of the deal is about ‘platform ‘.
• This is a new term coined for the network for the services offered by the duo. Facebook will integrate many services with WhatsApp.
• The major business, FB eyeing is the instant payment platform. It may give stiff competition to Paytm, Google pay, Amazon pay, etc.
• Along with Jio, FB will monetize the messaging and enable a business-customer interaction through Jio Mart.
• India has more than 62 million small businesses and lacs of people rely on them for jobs. The post suffering from lock down and post the exit of Coronavirus, many entrepreneurs need digital tools they can use to find new customers will be made easy.
• The small and medium businesses will thrive on this partnership, communicate with their clients and will successfully gain major foot hold in their respective industries. they will thus create new job opportunities and business opportunities.
• RIL was very much happy about the deal and commented that this is the largest investment for a minority stake by a technology company in any part of the world.  It is also the largest FDI in the technology sector in India.
• This investment has shot up valuation of JIO platforms amongst the top 5 listed companies in India by market capitalization.  It is very fast, as JIO is only three and a half years old company.
• The RIL stock enjoying a fair value of around Rs. 1,400, WhatsApp is just cornering the competition and fast becoming a ‘Super App’. Along with this investment, Jio Platforms, Reliance retail and Facebook’s WhatsApp service have entered into a commercial partnership agreement to further accelerate Reliance retail’s new commerce business on the JioMart platform using WhatsApp.
• This will enable the new entrants to support small businesses. This deal will help Facebook battle with utmost confidence against the Chinese apps like TikTok, which has made India’s youth go mad!
• There is also a bitter battle with Japan’s Softbank, US tech majors Google & Amazon along with China’s Ali Baba.
• Facebook commented that, JIO has brought more than 39 crores of people online and has created an innovative new enterprise connecting people. The new pricing JIO has brought in has created havoc in the telecom industry and has made the competition to follow suit. It is indeed a revolution.

Mark Zuckerberg is elated. He said that both the companies would like to work on major projects. This act will enable job opportunities for millions of Indians. He said he would like to thank Mukesh Ambani, the Reliance Boss or this major JV and said that the two groups will work hand in hand and create new job opportunities for the people of India.

The embattled Indian Industry will heave a sigh of relief and may welcome many more such deals to spiral the economy ahead!

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