Facebook Invested 5.7 Billion, In rupees 43,5,574Cr for buy 9.99% stake in Reliance Jio, Current valuation of reliance Jio is 65.95 Billion. Let's explore the Complete Case Study & Analysis of Facebook & Jio Deal.
Why Facebook invested in Jio? How consumers get benefited, Let's see Complete Case Study & Analysis of Facebook & Jio Deal.
Let see some facts about the Reliance Jio & Facebook deal
- Biggest deal in history. Never happened before.
- India's largest FDI In the technology sector.
- Jio comes under the top 5 companies of India by market cap.
- Facebook became the largest minority shareholder in Jio.
- Commercial partnership between Jio, Reliance Retail & WhatsApp for JioMart.
- It is also targeting a seamless Kirana transactions with JioMart using WhatsApp.
- Collaboration with Jio will enable new opportunities for 60 Million Small Businesses.
- SBI Cap says this deal play meaningful in the mobile commerce space.
Facebook History
- It started in the year 2004 by Mark Zuckerberg with some friends.
- Current valuation of Facebook 500 Billion.
- Major source of earning Facebook ADs.
Jio History
- Jio started on 27th Dec-2015 with a storm.
- Biggest mobile network service providers in India.
- Market leader of Indian mobile network
- Jio major sources of earning are data and calls.
- RIL has a total debt of Rs 1.53 lakh crores by the end of 2019.
- Reliance Jio debt has 40,000 Cr in total debt of 1.53 lakh of RIL.
Now Understand The Deal.
Facebook is the leader of online social networking sites and has a user base of 2.6 Billion. WhatsApp which is owned by Facebook has 1.5 Billion active users.
Somewhere Facebook stuck in the social media industry and not able to expand in another sector. Facebook totally depends on ads revenue but now getting tough competition from other players in the market.
Jio has a great offline and online presence in India. Reliance has so many offline stores so now Facebook+WhatsApp+Jio will bring JioMart for consumers of India.
Jio will take its first step to E-commerce and Whatsapp will play a major role in this venture through WhatsApp Chat & WhatsApp pay.
Users will be able to order the product & services through WhatsApp chat and pay through Whatsapp so don't require any third-party app for that.
Also Jio mart helps local vendors to register and deliver product nearby there reach so both will be happy and somewhere JioMart resolve the issues of local suppliers. Also Increase the revenue and demand of Local vendors and suppliers.
Facebook
JIO