Today morning news are flooded with the news of Facebook Inc picking 10% stake in RIL’s digital arm R.Jio for a whooping $5.7 billion (Approx Rs. 43,574 Cr.)
The deal now values R Jio around Rs. 4.62 Lakh Cr ($65.95 billion)
Here is a quick look on what these deal really means for both the players
- The partnership will allow Mark Zuckerberg founder Facebook to step up his expansion in India which is now eager to be largest internet market (Presently China), the online payment and e-commerce is rapidly growing as more and more people get smartphones in india.
- The deal can also be seen connected to the payments services, as whatsapp is trying to launch a UPI based payment services which will compete with Paytm, google Pay, PhonePe and Amazon Pay but due to regulatory and privacy concerns found it a little difficult to come across.
- Apart from whatsapp payment services, Zuckerberg is also looking at market for its crypto currency project called Libra.
- For R Jio the deal comes at a time when RIL is struggling with the impact of Corona and a slump in demand of crude oil. He is also seeking investors to reassure that he will honour his pledge to reduce the group debt to Zero.
- Now Jio, Reliance Retail and Whatsapp have entered into a partnership to “accelerate Reliance Retail’s New Commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp.”