Facebook takes 9.9% stake in Reliance's India app platform

Reliance Industries, the parent group, announced the transaction in a statement. It said the investment meant Jio Platforms was valued at INR435.7 billion ($65.9 billion). Founded towards the end of the previous year, Jio Platforms was previously a wholly-owned subsidiary of the oil-to-retail conglomerate that also owns Reliance Jio Telecom. 

Founded towards the end of the previous year, Jio Platforms was previously a wholly-owned subsidiary of the oil-to-retail conglomerate. It also owns Reliance Jio Infocomm, the unit that provides telecom, broadband, and over-the-top cable services.

Beginning in 2016, Jio launched a price war that enabled to become the country's largest telecom player by number of subscribers. Jio is regularly cited as being responsible for boosting internet access across the country laying the groundwork for a fast-growing internet-enabled start-up ecosystem.

Over the years, the company has created an app ecosystem by launching a series of Jio-branded apps targeting its subscriber base. Reliance Strategic Business Ventures (RSBVL), a corporate venture arm, plays the role of strategic buyer, and the backer of competitors, for India's VC-backed start-ups. Alongside another RIL-owned investment firm, the conglomerate made nine investments totaling INR8.5 billion ($117.5 million) last year.

Jio Platforms currently has more than 13 consumer-facing apps. Saavn, India’s leading music-streaming app, was the first major acquisition in March 2018. Since then, the ecosystem has grown, with RSBVL often leading the deals.

According to the statement, Facebook will support Reliance's plans to improve the app ecosystem, which it says has the potential to serve the needs of Jio's 388 million-strong subscriber base. India-based VCs have expressed measured skepticism of Reliance's vision but have conceded the plan has considerable potential. Analysts note the conglomerate has significant government backing. 

Reliance will work with Facebook initially to further the reach of JioMart, an app-based project that seeks to help consumers order products from the inventory of Reliance Retail, another subsidiary, with the orders fulfilled by local neighborhood stores. A commercial agreement has been finalized that is expected to enable retailers to fulfill orders made via Facebook's WhatsApp messaging service. India is WhatsApp's largest market globally. 

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• Topics
• Expansion
• South Asia
• Technology
• Investments
• India
• Reliance Strategic Business Ventures Limited
• Facebook
• TMT