Social media giant, Facebook, now a part of one of India’s largest cellular and internet service provider.
Facebook invests in stocks overseas
On April 22, Facebook and Jio Platforms made a huge announcement on the collaboration of the two giant companies, to improve the e-commerce market in India.
The deal materialized with Facebook, a social media giant in the US, bought ten percent worth of shared from another giant company, Jio Platforms. The investment has an estimated value of $5.7 billion.
Jio Platforms is known in India as a major player in both telecom and internet services in the country. The company is a subsidiary of India’s biggest multinational company, the Reliance Industries, and owned by Mukesh Ambani.
Utilization of social media for e-commerce usage
Jio Platforms has successfully gained a firm grip on the majority of telecom users in India, with around 388 million current subscribers. Now, the company wants to venture out on the e-commerce business.
Jio Platforms plans to use social media to market goods online and make use of the messaging app Whatsapp to connect customers to store owners. The involvement of Facebook in this plan by Mukesh will help the Jio Platforms reach out to more than 300 million active Facebook users in India.
An estimate of 30 million small to larger businesses in India will benefit from easy and hassle-free digital transactions offered by Jio Platforms. The e-commerce company will be called Jiomart.
Facebook owner Mark Zuckerberg sees the potential customer influx from this proposal of Mr. Mukesh. This is a good investment that ensures a win-win situation for both companies.
Businesses in India have greatly suffered since the COVID-19 pandemic hit the country. Jio market is set to see its full potential once the lockdown is being lifted.
Featured image by ABCSTLOUIS
