Facebook has completed a $5.7 billion deal in India’s Jio platforms thereby becoming the largest minority shareholder. The social media giant will own about 10 percent of Jio platforms which operates broadband, mobile services, and online commerce platforms in India.
The deal was announced in late March, as Facebook looks to tap into Jio’s huge subscriber base to expand its digital presence in India. Further, Jio is aligned with Facebook’s goal of providing internet access to all where in 3 years it has captured about 35 percent of the Indian market.
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In a statement by David Fischer, Chief Revenue Officer, says that Jio has brought more than 388 million people online, fueling the creation of innovative new enterprises and connecting people in new ways. In just the past five years, more than 560 million people in India have gained access to the internet. Facebook, Instagram, and Whatsapp platforms continue to be common day to day tools for Indians.
The new venture will enable Facebook to create new opportunities for 60 million small businesses across India. In particular, it will be creating new ways for people and businesses to operate effectively in the digital economy. For instance, by bringing together JioMart, Jio’s small business initiative, with the power of WhatsApp, people can connect with businesses, shops, and ultimately purchase products in a seamless mobile experience.
