From The Verge: Facebook has made a huge bet on India by investing $5.7 billion into Jio Platforms, the tech subsidiary of multinational conglomerate Reliance Industries. Jio variously operates broadband, mobile services, and online commerce platforms, and Facebook’s investment gives it around a 10 percent stake in the company, making it the largest minority shareholder.
Facebook’s primary footprint in India currently comes from its huge WhatsApp userbase; more than 400 million Indians use the messaging app, far more than any other country in the world. In a blog post bylined by chief revenue officer David Fischer and VP for India Ajit Mohan, the company says one of the goals of its investment is to tap into opportunities for small businesses, noting that “WhatsApp is so ingrained in Indian life that it has become a commonly used verb across many Indian languages and dialects.”
“One focus of our collaboration with Jio will be creating new ways for people and businesses to operate more effectively in the growing digital economy,” Fischer and Mohan write. “For instance, by bringing together JioMart, Jio’s small business initiative, with the power of WhatsApp, we can enable people to connect with businesses, shop and ultimately purchase products in a seamless mobile experience.”
Last week India’s Economic Times reported that Facebook and Reliance were planning to leverage WhatsApp and Jio services to create a WeChat-style “super-app” for India. Tencent’s WeChat has massive penetration in China, with more than a billion users and many small businesses using it for payments, promotion, and communication.
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