The Facebook investment of 5.7 billion dollars (rs. 43,574 cr) in Jio platforms has paved the way to promote money transactions and business on WhatsApp. At the same time, there is a plan to create hyperlocal e-commerce by connecting grocery stores with the deal. Jio has been connecting grocery stores with it for the last two years. At the same time, Facebook whats app and Instagram have associate small businessman with themselves. This deals will add a space to all these, which will speed up the digitisation of this segment
Though, with disruption in crude oil prices, RIL was struggling to keep upside movement last week. After this deal news on 22nd Reliance, which traded at 1237 on 21 April, operated with 7% gap and maintained high of 1384. On 24th RIL closed at 1417 with high of 1494. To check the update on crude oil prices, visit here.
Post this deal, Mukesh Ambani has reclaimed its places as the wealthiest person in Asia.
This deal got appreciation from Anand Mahindra as well. He wrote –
“Jio’s deal with Facebook is good not just for the two of them. Coming as it does during the virus-crisis, it is a strong signal of India’s economic importance post the crisis. It strengthens hypotheses that the world will pivot to India as a new growth epicentre. Bravo Mukesh!”
With this deal, Facebook gets a firm foothold in a vast fast-growing market through the Jio user base
The plan is to create a single platform of monopoly, from retail to e-commerce, by 2030.
In a note shared to press, Jio mentioned –
“Our focus will be India’s 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector.”
In 2019 AGM meet, Reliance mentioned its motive of making RIL debt-free by March 2021. Similar to selling 20% of share to Saudi Aramco, this deal is the step in this direction.