In a major turn of events, Facebook buys near 9.99% controlling stake in Reliance Jio worth Rs. 43,574 crores or $5.7 billion. Eyeing the 388 million userbases of the telecom Facebook said, “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.”
Morgan Stanley took the role of a financial advisor with AZB & Partners, David Polk & Wardwell stood as counsel advisors. This deal could bring major Digital Leap into India with the help of influential minds from Facebook and the monetary assets from Reliance Jio. The target audience for these developments are the 210 million people inclusive of 60 million businessmen, 120 million farmers and 30 million small merchants who could be equipped with suitable digital tools. This would make their work a lot easier and would be able to market their products better.
Both companies aim to develop many apps suited to Indian Youths. This partnership could enable Jio to set a stronger foothold in the e-commerce sector, starting with JioMart app. This app combines offline and online retail and is about to get a wide roll out after testing in Mumbai and Ahmedabad. Jio could seek help from Facebook to market this via services like Whatsapp, which enjoys a 35 crore plus monthly active users. One other way this partnership could turn out is in the launch of a TikTok alternative exclusively for Indians.
Facebook had expressed their interest in bringing a rival to one of the most downloaded apps in India. TikTok is a social platform where users can upload short videos.