• Loading stock data...

Jio + facebook = faith in indian economy

Team ProCapitas
Team ProCapitas



  • This tie would provide Jio a platform to accelerate its e-commerce launch (Jio Mart) plans in India.
  • In 43,574 Cr deal, Jio have used 28,000 Cr to redeem optionally convertible preference share of RIL. This OCPS would help RIL reduce its debt base.
  • Collaboration with Facebook would help Jio to increase its business base through world’s largest social media platform


  • On other side, this deal would allow Facebook to get into biggest e-commerce space in the world.
  • With Jio entering the 5G space, Facebook would get the access to the platform it requires to boost its customer base.
  • Facebook plans to use Jio digital base to launch its in pipeline Whatsapp Pay
  • With Reliance on the side, Facebook will get the muscle advantage on the policy issues; working with the government would be way easier.


What is there for me?

  • With different prospects coming in for RIL, it might be good time for people holding on RIL shares. RIL have seen a jump of ~17% since deal.
  • Jio e-commerce would break the monopoly by Amazon and Flipkart. In addition, this might be a threat to net neutrality. Given Jio’s control over data, the platform could have competitive advantages.

Hypothesis & Takeaways

  • In such pandemic situation, leading to global economic crisis, this deal is a strong indicator of foreign faith in Indian economy. The statement made by Anand Mahindra also echo’s the same.
  • Facebook (One of the biggest data analytics firm) + Jio (Biggest user database) = data being colonized. We all know what Cambridge Analytica is!
  • 10% stake for $5.7Bn give Jio a mammoth valuation of ~$57Bn. This seems bit high for a telecom company operating mostly on subsidized schemes.
  • Learning from the regulations and scrutiny on FB in west, this move with reliance will sure help them ditch government regulations in India.

Spread The Word
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Leave a Reply

Your email address will not be published. Required fields are marked *