Facebook-Reliance Jio Deal: JioMart, WhatsApp to collaborate for connecting consumers with local kiranas

Jio Platforms, Reliance Retail Limited and WhatsApp have announced a commercial partnership collaboration. This comes along with the Facebook-Reliance Jio deal, in which the social media giant has bought a 9.9 percent stake for $5.7 billion.

This has been done to further increase Reliance Retail’s New Commerce business on the JioMart platform using Facebook-owned WhatsApp and to back small businesses on the messenger, which already plays an imperative role in helping people and businesses connect in India, said Reliance Industries Limited in a statement released on April 22

Reliance Retail’s New Commerce platform, JioMart, is being made in partnership with millions of small merchants and kirana shops to empower them to better serve the requirements of Indian customers.

Here’s what Facebook will gain with this stake buy in Reliance Jio:

  • Facebook has now become Reliance Jio’s biggest minority shareholder.
  • With Jio’s 388 million customers, Facebook gets access to a wider audience.
  • Will help in creating opportunities for 60 million small businesses across India.
  • To support people and businesses operate more efficiently in growing digital economy.

“Our efforts with Jio will be focused on opening new doors and fueling India’s economic growth and the prosperity of its people,” Facebook said.

This is not the first time Facebook has come up with a stake in an organization in India. Facebook owns minority stake in Meesho — a social commerce company and Unacademy — an online education startup.

This collaboration will help in minimizing RIL’s debt burden of, which bulged because the breakneck expansion of Jio and other businesses. Ambani invested around $40 billion to launch Jio in 2016. RIL is also the largest retail player in India thanks to a series of aggressive expansionary steps into consumer-facing businesses such as ecommerce and grocery.

Follow our entire coverage on the Facebook-Reliance Jio Deal here.

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time