- India gets the highest Foreign Direct Investment (FDI) in its technology sector as Facebook purchased about 9.99 percent stake in Jio’s equity.
- The key aim is to provide ‘ease in living’ and ‘ease of doing business’ for every individual.
- Right after the announcement of investment, the Reliance Industries jumped as high as Rs 138,4.70 in on the Bombay Stock Exchange. A gain of 10 percent.
The 43,574 crores of investment are not only about the money that Reliance digital will receive but also about how there might be an acceleration in Reliance retail’s JioMart. The investment comes from Mr. Zuckerberg amid when everyone is staying in their homes due to the lockdown caused by COVID-19. This investment is perceived as one that can help small business, and the unconnected areas.
As Facebook already owns WhatsApp and Instagram, Jio on this list would be quite interesting. By this investment, the conglomerate aim towards improving the local Kirana shops and make them digital.
How will this money be utilized?
Reliance has a debt of about 40,000 crores and some optionally convertible digital shares, and to redeem them, around Rs. 28,500 crores will be used. And the rest of the balance of about 15,000 crores shall be as an investment in the company. The Vice President and managing director of Facebook India, Mr. Ajit Mohan, told that instead of having a single front, there are going forward for many fronts, and the deal with Mr. Mark is not exclusive. The investment by Mr. Mark Zuckerberg is one of the largest investments made for the stake of a minority by a tech firm.
With this, the growth story of India will take a digital turn, and new technology like improved 4G and 5G might get available much sooner than anticipated. With this investment, the Facebook has secured its seat at the Reliance Jio board by being the owner of 9.99 percent equity stake owner of Reliance Jio. This partnership between Facebook from the United States of America and Reliance Jio of India will prove to be huge and binding, where both the partners will get benefits in a great proportion. It will furthermore revive the Reliance company as currently, it is under pressure due to falling of the oil prices.