Facebook To Invest US$5.7 Bln In India's Reliance Group In Post-Covid-19 Digital Push

By Shakir Husain NEW DELHI, April 22 (Bernama) -- India's Reliance Industries Ltd said on Wednesday it will receive 435.74 billion rupees (about US$5.7 billion) in investment from Facebook in a boost to the group's digital ambitions. The US-based social media giant will acquire a 9.99 per cent equity stake in the Indian conglomerate's digital business Jio Platforms under the deal, according to a statement. The companies hope their partnership would lead to a new digital commerce drive in India by capitalising on the disruption caused to the retail and logistics sectors by the coronavirus pandemic. "The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI (foreign direct investment) in the technology sector in India," said Reliance Industries, which is owned by India's richest man Mukesh Ambani. In the post-coronavirus era "comprehensive digitalisation will be an absolute necessity for revitalisation of the Indian economy," it said. The US company has a huge user base in India through its WhatsApp, Facebook and Instagram networks. Ambani's group is expanding its new commerce platform JioMart by roping in millions of small merchants and "kirana" neighbourhood grocery shops. By joining hands with Facebook, it aims to help consumers "access the nearest kiranas who can provide products and services to their homes by transacting seamlessly with JioMart using WhatsApp." The company's ambitious business expansion plan focuses on 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. -- BERNAMA