Mumbai: Facebook will invest Rs 43,574 crore in Jio Platforms – a digital business arm of Reliance Industries. With this investment, Facebook will buy a minority stake of 9.99% in Reliance Jio, according to the company.
This partnership, according to Reliance Industries will focus on empowering 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 across India.
Facebook’s investment is the largest FDI (foreign direct investment) for minority investment in India.
In the post-COVID era, comprehensive digitalisation will be an absolute necessity for revitalisation of the Indian economy, according to the company.
“All of us at Reliance are humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians,” Mukesh Ambani, Chairman and MD – Reliance Industries Ltd, commented on the partnership with Facebook.
“In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time. The partnership will surely make an important contribution to this transformation,” added Ambani.
Besides this Facebook partnership, Jio Platforms, Reliance Retail Limited (“Reliance Retail”) and WhatsApp have also entered into a commercial partnership pact to further push Reliance Retail’s New Commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp.
The transaction is subject to regulatory and other customary approvals. Morgan Stanley as financial advisor and AZB & Partners and Davis Polk & Wardwell as counsels advised on the transaction.
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