Facebook, the messenger company has bought a 9.9% stake in Reliance Jio for Rs. 43,574 crore. The deal will significantly cut Reliance Industries' debt as well as enable Facebook strengthen its foothold in a rapidly growing market.
The deal values RIL's telecom arm Jio at $65.95 billion.
On the deal RIL said, for a small stake this is the largest investment by a tech company and the largest FDI in technology space in India. The acquisition places the Jio platform amongst the top 5 listed companies in India by market cap.
"This investment underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred in the country. In less than four years, Jio has brought more than 388 million people online, fueling the creation of innovative new enterprises and connecting people in new ways. We are committed to connecting more people in India together with Jio", Facebook said.
The company further said, "Our goal is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India."
Jio Platforms, Reliance Retail and Facebook's WhatsApp service have made an agreement for further accelerating Reliance Retail's new commerce business on the JioMart platform by using WhatsApp, RIL said.