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Facebook has made a big bet in India by investing $ 5.7 billion in Jio Platforms, the technology subsidiary of multinational conglomerate Reliance Industries. Jio operates various broadband platforms, mobile services, and online commerce, and Facebook’s investment gives it a stake of around 10 percent in the company, making it the largest minority shareholder.
Facebook’s primary footprint in India currently comes from its huge WhatsApp user base; More than 400 million Indians use the messaging application, much more than any other country in the world. In a blog post by revenue director David Fischer and vice president of India Ajit Mohan, the company says one of its investment goals is to take advantage of opportunities for small businesses, noting that “WhatsApp is so ingrained in Indian life. it has to become a verb in common use in many Indian languages and dialects. “
Facebook and Jio could be building a “super-app”
“One focus of our collaboration with Jio will be to create new ways for people and businesses to operate more effectively in the growing digital economy,” write Fischer and Mohan. “For example, by uniting JioMart, Jio’s small business initiative, powered by WhatsApp, we can enable people to connect with businesses, buy, and ultimately buy products in a seamless mobile experience.”
WhatsApp’s reach in India almost coincides with Jio’s, which was hugely damaging in the market by offering 4G plans with huge discounts much earlier than the competitors. The company has “brought more than 388 million people online,” according to the Facebook blog post. Facebook has tried before to provide Internet access in India, although its ill-conceived Free Basics program was eventually banned for violating net neutrality.
“We are excited to drive our investment into India’s vibrant digital economy,” write Fischer and Mohan. “Our efforts with Jio will focus on opening new doors and driving India’s economic growth and prosperity for its people. We look forward to working with Jio and future collaborations in India to advance this vision.”
