Amid Coronavirus pandemic Facebook-Reliance deal has been finalized today. Facebook the tech firepower buys 9.99% share of Jio Platforms for $5.7 billion. Jio Platforms is one of the subsidiaries of India’s giant group Relaince Industries Limited. After this investment made, the total value of Jio Platforms reached $66 billion.
Jio Platforms deal in Telecom and Broadband services where Telecom Unit has a subscriber base of 388 million. RIL initiated a mobile app based retail platform named JioMart recently. Using JioMart a customer can place order for goods and he/she will receive the deliver from nearby shops/businesses.
Mr Zuckerberg wrote on his Facebook page, “Facebook is teaming up with Jio Platforms – we’re making a financial investment, and more than that, we’re committing to work together on some major projects that will open up commerce opportunities for people across India…”
On the other hand, Ambani, Chairman of Reliance Industries , focused on the perspective of making a “Digital India”.
AMBANI-ZUCKERBERG DEAL: A STRATEGIC MOVE
India is already WhatsApp’s biggest market with 400 million users reaching nearly 80 per cent of smartphone users in the country. Reliance has a significant number of telecom & broadband subscribers. Facebook has technological know-how and expertise. Favorably, WhatsApp’s digital payment service WhatsApp Pay has got the approval from Indian Government in February 2020.
This is clearly a strategic move for Reliance to snatch a big slice of the market share from other digital payment service providers such as Paytm and Google Pay.
The economy of India is getting digitalized day by day. Small and Medium enterprises are now tend to use digital mode of payment. Reliance is targeting those segments to provide them with digital solutions.
Teaming up with Facebook will probably give a upper hand and hegemony in the digital payment industry. JioMart and WhatsApp Pay will together play a game changing role in this highly competitive market.