Why Facebook a Social Media platform invested in Jio to grow their Business in India ?
Written by :- Anirudha Mishra, Marketing Manager
Right now, Jio Company is the largest company in telecom sector in India. Why Reliance named their new subsidiary company as JIO. You will be amazed by the reason behind is very interesting. Reliance thought that they want to make mirror image of their successful “Oil” company in telecom sector. So, the mirror image of Oil=Jio.
Facebook is the one of the largest social media platforms in the world. Facebook buys the 9.99% shares of the Reliance Jio Company. Facebook pays 5.7 Billion Dollars. It’s a one of the largest deals in history in telecom market.
So, why Facebook pay this huge amount?
The main reason behind it is the Reliance Jio company has 390 million customer databases. Facebook’s company WhatsApp who have 400 million customers. Jio wants to enter in E-commerce platform like “Jio-Mart”. Jio want to increase there presence digitally they want to services like Jio-TV, Jio Cinema etc. Facebook wants to diversify their business. India’s market is always big opportunity for every company. So, Facebook thinks through Jio they get lot of Indian subscribers or customers this results a strong presence of Facebook in Indian origin
Idea behind the deal: -
Facebook have 9.99% (5.7 Billion Dollars) shareholding in Jio platform. This results the Facebook’s WhatsApp integrated with Jio. A win-win situation is created. Both companies get advantage of this deal. WhatsApp have lot of customers in India but the digital payment option is not active much. In India mostly preferred Apps for digital payment is Phonpe, Googlepay & Paytm. On the other side Jio have huge amount of Debt in the market. This deal give relief both the companies Jio reduces his debt & Facebook uses his Social media presence and monetize in a long term.