Mukesh Ambani says Reliance Jio-Facebook deal will accelerate India’s digital economy to empower and enrich people

22 April, 2020 | newsx bureau

Mukesh Ambani Business

US tech titan Facebook announces investment of Rs 43,574 crore ($5.7 billion) in Reliance Jio, the telecom unit of Reliance Industries Ltd (RIL) for a 9.99 percent stake.

Mukesh Ambani, Chairman of Reliance Industries Ltd (RIL), which signed a mega Rs 43,574 crore deal with Facebook giving the US-based social media giant a 9.99 per cent equity stake in homegrown mobile network Jio, said the partnership will prove to be a catalyst to make India into one of the world’s leading digital societies.

“All of us at Reliance and Jio are delighted to welcome Facebook Inc. as our long-term and esteemed partner. At the core of our partnership is the commitment that Facebook founder Mark Zuckerberg and I share for the all-round digital transformation of India and for serving all Indians,” Ambani said in a video statement.

Ambani said the two companies will together accelerate India’s digital economy to empower, enable and enrich people. Providing more details on the partnership, the Reliance Chairman said that Facebook, WhatsApp, and Instagram have become household names in India over the past few years.

“The combined power of Jio’s world-class digital connectivity platform and Facebook’s intimate relationship with the Indian people will offer innovative new solutions to each one of you,” he said.

He said that in the very near future, JioMart, Jio’s new commerce platform, and WhatsApp will empower nearly 3 crores small Indian Kirana shops to digitally transact with every customer in their neighbourhood.

“This means all of you can order and get faster delivery of day-to-day items from nearby local shops. At the same time, small Kiranas can grow their businesses and create new employment opportunities using digital technologies,” Ambani said.

In days to come, he said this winning recipe will be extended to serve other key stakeholders of Indian society. “Our farmers, small and medium enterprises, students and teachers healthcare providers and above all women and youth, who form the foundation of a new India,” he said.

The Reliance Chairman said that the synergy between Jio and Facebook will help realise the two goals – ‘Ease of Living’ and ‘Ease of Doing Business’- set by Prime Minister Narendra Modi. Ambani also wished good health to people amid coronavirus outbreak and said that India will surely emerge stronger, healthier and better.

“I wish good health, safety in the current extraordinary situation in India and around the world. We are in this together, we will overcome this pandemic. Corona Harega, India Jitega. With our collective efforts India will surely emerge stronger, healthier and better,” he said.

Facebook has announced investing Rs 43,574 crore into Jio Platforms, the investment will translate into a 9.99 per cent equity stake in Jio Platforms, the largest FDI in the Indian tech sector. Facebook’s investment will translate into a 9.99 per cent equity stake in Jio Platforms on a fully diluted basis, a statement issued by the Reliance Industries Limited read. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US Dollar).