It’s Official, Facebook to Invest Rs 43,574 Crore in Reliance Jio Platforms for 9.99% Stake

Reliance Industries Limited, Jio Platforms and Facebook today announced the signing of binding agreements for an investment of Rs 43,574 crore by Facebook into Jio Platforms. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US Dollar).

Facebook’s investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis. Jio Platforms, a wholly-owned subsidiary of Reliance Industries Limited builds building a Digital Society for India by bringing together Jio’s leading digital apps, digital ecosystems and India’s high speed connectivity platform under one umbrella.

Also read: Is Facebook eyeing a bigger pie of small businesses in India with the Jio deal?

Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms. Jio’s vision is to enable a Digital India for 1.3 billion Indians and Indian businesses, especially small merchants, micro-businesses and farmers, said a release from the company.

The Statement from Reliance Jio also Read:

Jio has built a world-class digital platform powered by leading 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 eco-system comprising network, devices, applications, content, service experiences and affordable tariffs for every Indian to experience the Jio Digital Life.

During the current Covid-19 crisis, Jio’s platforms have been a dependable and inclusive Digital Lifeline for our Nation. As one of the largest countries in the world, India is home to some of Facebook’s most thriving communities on WhatsApp, Facebook and Instagram. Over the years, Facebook has invested in India based on a strong belief in India’s entrepreneurial talent and opportunity, to help create meaningful impact for Indians and Indian businesses using their multiple platforms.

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 FDI in the technology sector in India. The investment values Jio Platforms amongst the top 5 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. 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.