It is the largest investment for minority stake by a technology company anywhere in the world and the largest FDI in technology sector in India.

Mark Zuckerberg led Facebook Inc. has agreed to buy 9.99% stake in Mukesh Ambani led Jio Platforms Limited (JPL) for ₹43,574 crore, valuing the company at ₹4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of ₹70 to a U.S. Dollar).

Jio Platforms, a wholly-owned subsidiary of Reliance Industries Limited, is a next-generation technology company building a digital society for India by bringing together Jio’s leading digital apps, digital ecosystems and India’s first high speed connectivity platform under one umbrella.

Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.

Largest FDI in the technology sector in India

The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest foreign direct investment (FDI) in the technology sector in India.

The investment values Jio Platforms amongst the top five listed companies in India by market capitalization, within just three and a half years of launch of commercial services, validating Reliance Industries’ capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value.

“Our goal with this investment is to enable new opportunities for businesses of all sizes, but especially for small businesses across India and create new and exciting digital ecosystems that will empower, enrich and uplift the lives of all 1.3 billion Indians,” said RIL in a statement.

“This partnership will accelerate India’s all-round development, fulfilling the needs of Indian people and the Indian economy. Our focus will be India’s 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector, in addition to empowering people seeking various digital services.

“The partnership assumes special significance for India in the wake of the severe disruptions caused by the coronavirus pandemic in the Indian and the global economy.

“In the post-COVID era, comprehensive digitalisation will be an absolute necessity for revitalisation of the Indian economy. It is our common belief and commitment that no Indian should be deprived of the tremendous new opportunities, including opportunities for new employment and new businesses, in the process of India’s 360-degree digital transformation.”

‘Digital Sarvodaya of India’
Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, commented on the partnership with Facebook, saying, “When Reliance launched Jio in 2016, we were inspired by India’s digital SARVODAYA ​​dream – to improve the quality of life For India’s inclusive digital growth, ”to advance India as one of the leading digital societies of every Indian and world. So we all have the opportunity to welcome Reliance as our long-term partner to develop and transform India’s digital ecosystem for the benefit of all Indians in India. ”

“The synergy between Jio and Facebook reflects Prime Minister Narendra Modi’s ‘Digital India’ mission with its two ambitious goals – ‘Ease of Living’ and ‘Ease of Doing Business’. Helping Indian people in every category without exception Will do. ” After the Corona era, I am confident of India’s economic recovery and revival in a short time. The partnership will certainly contribute significantly to this change, ”he said.

Commercial partnership agreement

With the investment, Jio Platforms, Reliance Retail Limited (“Reliance Retail”) and WhatsApp also entered into a business partnership agreement to further accelerate Reliance Retail’s new commerce business and support small businesses on the JioMart platform using WhatsApp is.

WhatsApp already plays an important role to help connect people and businesses in India. Reliance Retail’s new commerce platform, JioMart, is being created in partnership with millions of small traders and grocery stores to empower them to better meet the needs of Indian consumers. Companies will work closely to ensure that consumers are able to reach the nearest eunuchs that can provide products and services to their homes by basically transacting with JioMart using WhatsApp.

Digital India

Jio’s vision is to enable a Digital India for 1.3 billion Indians and Indian businesses, especially small traders, micro businesses and farmers. Jio has created a world-class digital platform powered by key technologies such as broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of things, augmented and mixed reality and blockchain. Jio has created an ecosystem that includes networks, devices, applications, content, service experiences and affordable tariffs for every Indian to experience Jio Digital Life.

As one of the largest countries in the world, India is one of Facebook’s most affluent communities on WhatsApp, Facebook and Instagram. Over the years, Facebook has invested in India based on a strong belief in entrepreneurial talent and opportunity in India to create meaningful impact for Indians and Indian businesses using its multiple platforms.

RIL shares were trading 6.19% up at Rs 1319.9 on the BSE on Wednesday.