In the biggest tech FDI, Facebook buys 9.9% stake in Reliance Jio amounting to Rs 43,574 crore
Facebook has bought a whopping 9.9% stake in Reliance Jio for Rs 43,574 crore, which would give the social media company a strong ground in the rapidly expanding market. It will also be beneficial for the Indian oil-to-telecom conglomerate, in terms of reducing debt. The deal has made Jio stand at a value of Rs 4.62 lakh crore.
According to a statement issued by, RIL said for a small stake by a technology company in the world and the largest FDI in the technology sector in India, this is by far the biggest investment.
Due to the investment, Jio Platforms has been listed among the top 5 companies in India by market capitalization, in a matter of just three and a half years of the dawn of commercial services.
In lieu of the investment, Jio Platforms, Reliance Retail and Facebook’s Whatsapp have also been included into the partnership agreement to accentuate Reliance Retail’s new commerce business on the JioMart platform using Whatsapp. It is also to aid small business ventures on Whatsapp, RIL said.
Facebook stated, “This investment underscores our commitment to India and our excitement for the dramatic transformation that Jio has spurred in the country. In less than four years, Jio has brought more than 388 million people online, fueling the creation of innovative new enterprises and connecting people in new ways. We are committed to connecting more people in India together with Jio. Our goal is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India.”
The deal is speculated to cut RIL’s debt, which saw a spike due to Jio’s speedy expansion and other businesses.
In a previous statement issued by Reliance last year, it said it would transform Jio into a fresh digital services company by making an investment of $15 billion, attracting investors in large flocks. The Jio-Facebook commenced after Microsoft signed a 10 year deal with Reliance in 2019 in a bid to power the company’s data centers with the help of Azure clouds.