The adaptability of people with the internet is booming in this era of digitalization. We Indians have especially engrossed ourselves in the technical development for a while now. Many companies are showing genuine interest in Indian social and economic growth. Because India is going through a rapid transformation in the sphere of economy our world has ever witnessed. And, it is happening mostly due to the involvement of India in digital technologies. With every passing day, people are showing enthusiasm to use the internet do to something valuable. They are learning new skills, opening small businesses, etc. Within the last five years, around 500 million people got internet access in India. This led one of the biggest social media platforms to invest in Jio Platforms, the technical division of Reliance Industries.
The Investment
Jio is a Reliance subsidiary that provides broadband, mobile services, and online commerce stage to the Indian people. It is one of the leading internet platforms in India currently. So, what can be better than the gigantic social media platform collaborating with one of the largest network enterprises? Facebook announced that it is investing $5.7 billion in Jio Platforms, thus making Facebook its largest minority shareholder. This deal has summed up Jio’s value to $65.95 billion.
Facebook already has a mammoth size market in India. It has the largest number of Whatsapp users from our country, that is, 400 million users. So, further investment in the Indian market will help the company operate more effectively and contribute to the digital economy. Everything happens today with a few swipes on our mobile screen. And, Facebook aspires to connect more people through the power of Whatsapp and fuel Jio’s small businesses like JioMart.
A New Partnership
Facebook says that Jio has gone through some excellent development in less than three years of its launch. Moreover, after Jio has come into the market, the number of Internet users in India has escalated very fast. So, the company looks forward to opening new opportunities for people through the services of Jio. Already, 388 million people are using the internet service of Jio and the number is expected to rise soon.
Facebook is currently targeting small businesses in India. There are around 60 million small enterprises that can grow bigger with stronger connectivity. But, the pandemic of COVID-19 is indicating a huge downfall in the economy which will affect these small businesses. So, responding in the need of the hour, Facebook along with Jio commits to helping businesses grow again. With affordable internet collection and a huge audience, businesses can digital and hence expand internationally.
Something big is coming up
Facebook and Jio have come together to make a stronger community in the sphere of digital business. The plan is to make a new app that will connect people around the world and help in purchasing products as well. Though, the companies didn’t make any big announcement about releasing the app as it is an ongoing project. The companies want to create something similar to WeChat, a multipurpose app for the Indian market.
Delays have been caused in this project due to the outbreak of novel coronavirus. But, it is clear that a multipurpose app is coming in its way. It will help people buy groceries, do shopping, and also make the payment from JioMoney. But, the final model of this new business isn’t clear yet. Reliance has not mentioned if there will be more than one investor for Reliance Jio and Reliance Retail. But, both the companies have set off to launch this new super at the earliest.
Future planning
The whole world is losing its financial stability due to the lockdown. Recently, the oil price has also gone negative. But, Mukesh Ambani, Chairman and Managing Director of Reliance brings a ray of hope. He said that this new collaboration will help Indi recover economically during the post-Corona phase. So, Reliance is looking forward to a long time commitment with Facebook to heal and embrace the digital environment of India.
With this new partnership, it is predicted that India might have 2.1 billion devices connected to the internet by 2023. In this collaboration, Morgan Stanley acted as the financial advisor of Jio Platforms. This partnership will open new opportunities for the people of India.
Annasha Dey is an NIT student, who apart from studying engineering is also a content writer. She has a great interest in photography, writing, reading novels, and travelling as well. She is a foodie who loves socializing and hanging out with her friends. She is also a trained Kathak dancer and a big fashion enthusiast. Dey also loves watching TV series, which includes F.R.I.E.N.D.S. and Big Bang Theory. To be a better writer she prefers to read more