Reliance Jio and Facebook Deal: How will it benefit the people of India?

In a press release today, Reliance has announced that Facebook has invested in 9.99% stake of Reliance Jio. The company even tweeted the Jio and Facebook deal on its handle:

Jio and @Facebook partner to create opportunities for people and businesses.#WithLoveFromJio #Jio #Facebook #MarkZuckerberg #RelianceJio #JioDigitalLife pic.twitter.com/dMlW5TT4QF

— Reliance Jio (@reliancejio) April 22, 2020

What is the Jio and Facebook deal?

Facebook will be investing ₹ 43,574 Crore in Jio Platforms. The amount valued is for 9.99% stake. This deal will turn out to be the largest FDI for Minority Investment in India. This partnership is said to create new opportunities for people and businesses. RIL said,

This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore ($65.95 billion) pre-money enterprise value, agreed at a conversion rate of Rs 70 to a US Dollar. Facebook's investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis.

Not only is it the largest minority investment, but it also the largest FDI in "technology" sector. This investment will take Jio in the top 5 markets capitalised companies.

Additionally, Reliance Retail Limited and WhatsApp have also entered into a commercial partnership agreement. This will accelerate

Reliance Retail’s New Commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp.

How will it benefit the Indian Population?

1. Reliance Jio plans to invest this amount to digitalize the small and medium enterprises.

2. After the COVID-19 era, people will have moved to digitalisation. It will necessary to revitalise the Indian economy. This deal will bring a lot of employment opportunities for Indians.

3. WhatsApp and Reliance Retail have also agreed and this will bring Jio Mart on WhatsApp for small entrepreneurs.

4. Facebook's growth module and Jio's technology will accelerate the 360-degree digital transformation.

5. Reliance Jio will now be valued at Rs 4.62 lakh crore.

On this deal, Mukesh Ambani said:

The synergy between Jio and Facebook will help realise Prime Minister Shri 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. The partnership will surely make an important contribution to this transformation.

Facebook also said:

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.