On 22 April, Facebook bought 9.9% shares in Reliance Jio for 43,574 crores. For Jio, Morgan Stanley was the financial advisor, AZB partners  and ‘Davis Polk and Wardwell’ were the counsel of advisors.Law firm Shardul Amarchand Mangaldas and PwC advised Facebook and Bank of America acted as an exclusive financial advisor. This move by Facebook has given it a strong foothold in the leading telecommunication industry in India.Reliance Jio has benefitted from this deal as their debt is significantly cut down. This deal has increased the market value of Jio to 65.95 billion. This deal has created history as Facebook is the first technology company to have invested in the telecommunication industry in India.Facebook being a minority member of Jio, the investment is large. This deal has made Jio one of the top 5 leading companies in India.Reliance Jio was launched 4 years back on 27 December, 2015. It has a market base of 388 million people. It awakened the era of an affordable net package and unlimited talk time, making it a serious threat to other telecommunication companies.This investment is also having a commercial commitment, where Reliance Retails, the new e-commerce business, “ JioMart” will be using WhatsApp as a platform. This new platform will help various small businessmen to sell their products online. This will empower 3 crore people to sell their products and receive payment digitally.This move will help small retail stores in the neighbourhood as orders can be taken and door to door delivery can be done easily.In India, Facebook has the largest market of nearly 328 million monthly users and 400 million monthly users for WhatsApp. This move was made by Facebook to strengthen the relationship and commitment with IndiaMark Zuckerberg in his statement mentioned that there are various small entrepreneurs in India, who need technical support platforms to make their livelihood easy. Post Corona, this would be a game-changer for many small businesses.The deal aims to ensure digital platform to 60 million micro small and medium companies, 120 million farmers, and 30 million small merchants.

Ver todos los episodios