Anand Mahindra congratulates Ambani for Facebook-Reliance Jio deal

Congratulating Mukesh Ambani for signing a mega-deal with social media giant Facebook, industrialist Anand Mahindra said, it is (the deal) a strong signal of India’s economic importance.

Calling India an important growth centre, he tweeted, “Jio’s deal with Facebook is good not just for the two of them. Coming as it does during the virus-crisis, it is a strong signal of India’s economic importance post the crisis. It strengthens hypotheses that the world will pivot to India as a new growth epicentre. Bravo Mukesh.”

Jio’s deal with Facebook is good not just for the two of them. Coming as it does during the virus-crisis, it is a strong signal of India’s economic importance post the crisis. It strengthens hypotheses that the world will pivot to India as a new growth epicentre. Bravo Mukesh! https://t.co/5rIi6WOjWf

— anand mahindra (@anandmahindra) April 22, 2020

Facebook on Wednesday (April 22) announced an investment of USD 5.7 billion (₹43,574 crore) to buy a 9.99 per cent stake in Jio platforms – a deal that will help RIL cut debt and use WhatsApp to create an Indian e-commerce giant that could rival Amazon and Walmart.

The largest foreign direct investment (FDI) in the technology sector in India will give the US social-networking firm a broader foothold in its biggest global market.

“Today we are announcing a USD 5.7 billion, or ₹43,574 crore, investment in Jio Platforms, part of Reliance Industries Ltd, making Facebook its largest minority shareholder,” the company said in a statement.

Reliance Industries (RIL) in a separate statement said the investment by Facebook values Jio Platforms at ₹4.62 lakh crore pre-money enterprise value (USD 65.95 billion).

Facebook will be issued fresh equity shares and will get a board position on Jio Platforms.

Mukesh Ambani’s twin children, Isha and Akash, are also part of the board.

Jio Platforms, which was created in October last year to house all-digital initiative of Reliance, will retain ₹15,000 crore and use the remaining amount to pare some of its about ₹40,000 crore debt.

Related news: Anand Mahindra offers to make ventilators, donate full pay for COVID aid

Facebook said the investment “underscores our commitment to India and our excitement for the dramatic transformation that Jio has spurred in the country”.

Together with WhatsApp and Instagram, Facebook overall is estimated to have more users in India than any other single country, and the numbers are to grow.

The number of internet users in India is projected to rise to about 850 million in 2022, according to consultancy PwC, up from 450 million in 2017.