You must have seen Indian firms that have been doing investments in the Silicon Valley firms but this is one of the rare occasions when we are going to report about a Silicon Valley firm that has made an investment in an Indian firm. Talking about the firm that has done this investment, it is none other than Facebook. As far as the firm they have made an investment in is concerned, we are talking about Reliance Jio led by Mukesh Ambani. Jio has become of the fastest-growing telecom providers in India since last few years.
It is also not new that a firm from the West wants to enter the Indian market and it is generally with the help of a network provider as they can tie up with them to provide services. As far as the investment made by Facebook in Reliance Jio is concerned, the company has acquired a 9.99% stake in the company thanks to a $5.7 billion investment. It is known that Reliance Jio currently has 370 million subscribers in India and the numbers are continuously growing.
Also, Facebook becomes the largest minority shareholder in the Indian telecom network with this deal that values Reliance Jio at $65.95 billion. On the investment made by Facebook, the company says that this marks their “commitment to India” and adds that Jio will create “new ways for people and businesses to operate more effectively in the growing digital economy.”
Not only India, this is also the largest investment made by an outsider company inside any country’s firm and the largest foreign direct investment in technology space in India. The companies have also said that “We can enable people to connect with businesses, shop and ultimately purchase products in a seamless mobile experience,” and there are reports this investment could mark the merger between WhatsApp and JioMart