Facebook is pumping billions of dollars into Jio Platforms, the digital technology arm of Indian billionaire Mukesh Ambani’s sprawling conglomerate Reliance Industries.
The deal, announced Wednesday, will see Facebook invest $5.7 billion for a 9.99% stake in Jio Platforms, giving the Silicon Valley company a key foothold in one of the world’s fastest growing internet markets.
Jio Platforms has several services under its umbrella, including Reliance Jio, the mobile network that has signed up nearly 390 million subscribers since launching three and a half years ago. Reliance also has a retail arm, and the tie-up includes a commercial partnership with Facebook-owned messaging platform WhatsApp that potentially paves the way for Facebook to monetize WhatsApp’s 340 million users in India.
Reliance is “humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India,” Ambani said in a statement.
Facebook’s chief revenue officer David Fischer and vice president and managing director for India Ajit Mohan wrote in a blog post that the investment “underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred in the country.”
