When in this global pandemic and shut down, all other businesses have more or less slumped, the tech companies can be seen thriving. Evidently, after conquering WhatsApp and Instagram, Facebook has now made a huge investment in Jio platforms of Reliance Industries.
India: the largest market for Facebook
Facebook has been trying since long to expand its market in Asia as it hasn’t made as such benefit as it should have made here already, compared to its other markets. However, it anticipates an upheaval this time believing the partnership to be a strategic move. India has over 400 million WhatsApp users all driven in the past few years by the telecom network Jio, offering internet at a much cheaper price than ever and than any.
Facebook invested $5.7 billion in Jio
Facebook becomes the largest minority shareholder of Jio Platforms Limited owned by Reliance Industries, by investing Rs 43,574 crore for its 9.99% stake. Jio Platforms offers a wide number of services including broadband, mobile services, and online commerce outlets.
The partnership can be mutually beneficial
The partnership intends to deliver windfalls at both the ends. This deal beckons the direct access of Facebook to Jio’s 370 million subscribers. Whereas, India is under its major digital transformation and the alliance looks forward to shaping this growth and also to play a major role in uplifting the Indian economy and commerce section.
An initiative towards improving the e-commerce of India
The major talk of the deal has been the e-commerce sector of India. As in a joint interview, Mr. Mohan, a top Reliance executive said that tens of millions of small businesses in India were already using Whatsapp to communicate.
By twinning Whatsapp with Jiomart, a new platform is being planned for people to take their business online with ease. The blueprint is to make even the smallest of the local grocery stores function digitally. Complimenting this notion, Facebook is also plotting to launch a payment feature for Whatsapp in India which will further help the small retail markets to digitally transact with every customer in their neighborhood.
It will be interesting to behold if this phenomenal partnership grows to advantage or turns the other way round.