Recently, Facebook has bought a stake 9.9% in Reliance Jio that amounts to $5.7 billion that is Rs 43,574 crore. With this venture, a whole new box of opportunities has opened up for both the companies respectively.
India is a fast growing economy and many companies have grown the interest to venture exceptionally. While Facebook is seeing this as a positive prospect for a firm foothold in the Indian economy, for Jio it is a scope to liquidate the debts.
In the Court of Facebook
Facebook has become a minority shareholder in Reliance Jio. This also means the social media giant gets access to approximately 400 million customers. A wider perspective has opened for the company as it gets access to even the remotest parts of India where advertisements would be unresponsive.
With this venture, Facebook is expected to create an estimated 60 million small scale and medium scale business all across India. This will also aid to ‘Digital India’ mission put forth by Prime Minister Narendra Modi. This will ease the living standard of Indian startup entrepreneur along with a good platform to undertake business. Rural and urban communities, both will be benefitted similarly.
India has escalated to be one of the hotspots in the world for Facebook as more users are signing up daily and even utilising the portal for other features as well that includes business expansion and branding. According to the social media giant, India gives the largest users cluster in the world. Hence, through this deal, Facebook can get even more close to its user.
We all know about WhatsApp and use it vehemently. Facebook is planning on introducing a payment platform in WhatsApp and having a local partner smoothens the process like dealing with regulatory issues, privacy and local storage.
In the Court of Reliance Jio
When viewed in respect of Reliance Jio, the venture will add to the growing digital economy. One of the instances is that people will be able to undertake business in an elevated platform through WhatsApp. The entire business can be undertaken through a smartphone itself that is easy to understand and work on. This Jio’s initiative new opportunities will open up feeding the Indian economy and people’s prosperity.
Through this billion dollars deal, RIL will get loose from the burden of debt as well. Mukesh Ambani has been in an ever-expanding phase and the last three years have been a bottleneck competition for RIL with the expansion regime of Jio along with other projects. Jio initiative itself attracted $40 billion initial investment in the year 2016.
RIL’s JioMart project will get a push in this deal. JioMart is Jio’s initiative for small businesses and startups that will offer the platform to connect with suitable customers and shareholders and undertake transactions through mobile itself leaving behind any advanced technological setup.
This deal is by far the most praised venture, where both the companies along with Indian citizens and government is going to be benefitted excessively. Even the cryptocurrency world is praising such a decision as more Indian people will likely be investing and start experimenting in digital assets. Additionally, blockchain and bitcoin will get good exposure. It is time to wait and watch the benefits in practical terms after worklife resumes globally after the pandemic COVID 19 recedes.