Facebook to Invest ₹ 43,574 crore in Jio Platforms for a 9.99% Stake

Partnership To Create Opportunities For People And Businesses

Reliance Industries Limited (“Reliance Industries”), Jio
Platforms Limited (“Jio Platforms”) and Facebook, Inc. (“Facebook”) announced
the signing of agreements for an investment of ₹ 43,574 crore by Facebook into
Jio Platforms. This investment values Jio Platforms at ₹ 4.62 lakh crore
pre-money enterprise value ($65.95 billion, assuming a conversion rate of
₹ 70 to a US Dollar). Facebook’s investment will translate into a 9.99%
equity stake in Jio Platforms on a fully diluted basis.



Jio Platforms, a wholly-owned subsidiary of Reliance
Industries Limited, is a next-generation technology company bringing together
Jio’s leading digital apps, digital ecosystems and high speed connectivity
platform under one umbrella. Reliance Jio Infocomm Limited, which provides
connectivity platform to over 388 million subscribers, will continue to be a
wholly-owned subsidiary of Jio Platforms.



Jio’s vision is to enable a Digital India for 1.3 billion
Indians and Indian businesses, especially small merchants, micro-businesses and
farmers. Jio has brought transformational changes in the Indian digital
services space and propelled India on the path towards becoming a global
technology leader and among the leading digital economies in the world.



Jio has built a world-class digital platform powered by
leading technologies such as Broadband connectivity, Smart Devices, Cloud and
Edge Computing, Big Data Analytics, Artificial Intelligence, Internet of
Things, Augmented and Mixed Reality and Blockchain.It  has created an
eco-system comprising network, devices, applications, content, service
experiences and affordable tariffs for every Indian to experience the Jio
Digital Life. During the current Covid-19 crisis, Jio’s platforms have been
a dependable and inclusive Digital Lifeline for our Nation.



India is home to some of Facebook’s most thriving communities
on WhatsApp, Facebook and Instagram. Over the years, Facebook has invested in
India based on a strong belief in India’s entrepreneurial talent and
opportunity, to help create meaningful impact for Indians and Indian businesses
using their multiple platforms.



The partnership between Facebook and Jio is the largest
investment for a minority stake by a technology company anywhere in the world
and the largest FDI in the technology sector in India. The investment values
Jio Platforms amongst the top 5 listed companies in India by market
capitalization, within just three and a half years of launch of commercial
services, validating Reliance Industries’ capability in incubating and building
disruptive next-generation businesses, while delivering market defining
shareholder value.



The goal with this investment is to enable new opportunities
for businesses of all sizes, but especially for small businesses across India and
create new and exciting digital ecosystems that will empower, enrich and uplift
the lives of all 1.3 billion Indians.



This partnership will accelerate India’s all-round
development, fulfilling the needs of Indian people and the Indian economy. The
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 addition to empowering people seeking
various digital services.



The partnership assumes special significance for India in the
wake of the severe disruptions caused by the coronavirus pandemic in the Indian
— and the global — economy. In the post-COVID era, comprehensive digitalisation
will be an absolute necessity for revitalisation of the Indian economy. It is
their common belief and commitment that no Indian should be deprived of the
tremendous new opportunities, including opportunities for new employment and
new businesses, in the process of India’s 360-degree digital transformation.



Concurrent with the investment, Jio Platforms, Reliance
Retail Limited (“Reliance Retail”) and WhatsApp have also entered into a
commercial partnership agreement to further accelerate Reliance Retail’s New
Commerce business on the JioMart platform using WhatsApp and to support small
businesses on WhatsApp. WhatsApp already plays an important role in helping
people and businesses connect in India. Reliance Retail’s New Commerce
platform, JioMart, is being built in partnership with millions of small
merchants and kirana shops to empower them to better serve the needs of Indian
consumers. The companies will work closely to ensure that consumers are able to
access the nearest kiranas who can provide products and services to their homes
by transacting seamlessly with JioMart using WhatsApp.



Commenting on the partnership with Facebook, Mukesh Ambani,
Chairman and Managing Director, Reliance Industries Ltd, said, “When Reliance
launched Jio in 2016, we were driven by the dream of INDIA’S DIGITAL SARVODAYA –
India’s Inclusive Digital Rise to improve the quality of life of every single
Indian and to propel India as the world’s leading Digital Society. All of us at
Reliance are therefore humbled by the opportunity to welcome Facebook as our
long-term partner in continuing to grow and transform the digital ecosystem of
India for the benefit of all Indians. The synergy between Jio and Facebook
will help realise Prime Minister Narendra Modi’s ‘Digital India’ Mission with
its two ambitious goals — ‘Ease of Living’ and ‘Ease of Doing Business’ – for
every single category of Indian people without exception. In the post-Corona
era, I am confident of India’s economic recovery and resurgence in the shortest
period of time. The partnership will surely make an important contribution to
this transformation.”