RIL signed a deal with Facebook Inc– India’s richest man is now in business with the world’s largest social media company. Mukesh Ambani’s Reliance Jio had signed a mega core deal for the sale of 10% equity stakes in Jio to Facebook.
The deal is made to give Ambani’s online grocery venture Jio Mart. As part of the deal, Jio Mart will team up with WhatsApp to increase its reach. Jio Mart will be able to leverage the power of WhatsApp to connect more and more people with his venture by bringing millions of local vendors and Kirana stores online.
The partnership with Jio would allow Facebook to set up his expansion in India and it will be the second-largest internet market after China, while India will be a testing ground for WhatsApp payment services and Mark Zuckerberg is also separately looking for his cryptocurrency project called Libra.
The RIL ( Reliance Industries Limited) chairman said that the RIL and FB deal would be a milestone for the government’s Digital India initiative. He also added that in the post corona era, I am confident of India’s economic recovery in the shortest period of time. This partnership will make an important contribution to the transformation as well as it will influence other companies to look in this scenario.
This deal is a win-win for both of them. Facebook said The investment underscores our commitment to India and our excitement for the dramatic transformation that Jio has spurred in the country. Our goal is to enable new and better opportunities for more than 60 million small businesses that are operating across India.
India is home to the largest communities on Facebook and WhatsApp with lots of entrepreneurs. Our country is in the middle of the major digital transformation. In a video statement that was released shortly after the announcement of this mega core deal.
RIL Chairman said that it would be a great catalyst to make India the world’s leading digital society and this partnership will increase the Foreign Direct Investments. He also added that together with our companies will accelerate India’s economy and will enrich all the users.
Ambani said that in future Jio’s new commerce platform and WhatsApp will empower nearly 3 crore India’s Kirana stores to get digital to transact with every customer in their locality.
In 2016, Ambani had already shaken up India’s entire hyper-competitive telecom industry by starting the 4G services at very low prices and helped millions of people to get online and this step had led to the shut down of other telecom companies like Aircel, Docomo, etc.
For Jio apart from money and Facebook tech firepower, it will get access to the most powerful universal application and they can take all the local vendors on their venture Jio Mart because all of them already have WhatsApp. As per the experts, this step will give a positive response in order to get India’s economy back to its track. They further stated that RIL is suffering from a huge financial crisis due to this pandemic and almost all of their ventures are dealing with this crisis, so they have come up with this idea in order to stabilize their growth.