India’s most massive telecom, Reliance Jio has just let the world’s largest social media Facebook into its body. Today, Mukesh Ambani, owner of Reliance Industries, has announced the stock purchase of 9.99% by Facebook in Reliance Jio, for a price of Rs. 43,574 Crore ($5.7 billion). This move is beneficial for both, as Reliance Jio is intended to reduce its debt and Facebook to enter one of the largest economies of the world.
Ever since Reliance Jio entered the telecom market in India, it has been disruptive with its offerings. The company has stood forefront in pushing India’s Digital revolution recently. Other players in the market like Bharati Airtel, Idea, Vodafone, BSNL were chocked, and few companies like Telenor and Docomo were dead. Reliance Jio has garnered over 370+ million subscribers, mostly grabbing from other players and rocketed to India’s No.1 telecom spot in led than four years. Its competitive pricing has bee the primary reason for its success.
This rapid growth of Reliance Jio made every nation to look at India, and companies like Facebook and Google to set their eyes for piercing in. And now, as per Mukesh Ambani’s announcement today morning, Facebook purchased a 9.99% stock of Jio telecom for a price of Rs.43,574 crores or $5.7 billion. This makes the Reliance Jio’s total valuation at $65.95 billion (at Rs.70/USD). This partly acquisition by Facebook or partially selling of Jio’s stock is one the plans of Reliance Industries to satisfy their aim of making Reliance Jio debt-free by 2021.
The Future Plans!
Facebook has long been waiting for an opportunity to capture the Indian market. The company is already having more than 270 million using Facebook and over 400 million using WhatsApp. On the other hand, Reliance Jio has over 370 million subscribers. Thus integration of both companies shall lead to another revolution soon.
We expect this to happen soon with Reliance Jio’s JioMart plan. As per the reports, JioMart is set to bring all the retail outlets across India on board along with its Reliance Fresh stores, to start an e-commerce firm to take on existing giants like Amazon and Walmart owned Flipkart. Integration of WhatsApp with the store’s owners could let the seamless flow of business with their customers. Well, we’re still waiting to see what both companies are officially intended to do.
Source – Reliance Jio