Facebook Is Bringing $5.7 Billion To Indian Internet Giant Jio

Investing $5.7 billion in Jio Platforms, the tech arm of the global conglomerate Reliance Industries, Facebook has made a big bet on India. Jio provides internet, telecom networks and online commerce sites in a number of ways, and Facebook's investment gives it around 10 percent of the company's shares, making it the biggest minority shareholder.

The primary footprint of Facebook in India at the moment comes from its massive WhatsApp user base; over 400 million Indians use the messaging app, far more than any other country in the world. In a blog post by Chief Revenue Officer David Fischer and VP for India Ajit Mohan, the company said one of its investment priorities is to pursue 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.”

India's Economic Times reported last week that Facebook and Reliance are preparing to leverage the WhatsApp and Jio services to create a "super-app" WeChat style for India. Tencent's WeChat has wide presence in China, using it for payments, marketing, and contact with more than a billion users and many small businesses.

The scope of WhatsApp in India is nearly matched by Jio, which proved to be hugely disruptive on the industry by providing highly subsidized 4G plans well ahead of the competition. According to Facebook's blog post the service has "brought more than 388 million people online." Facebook has previously attempted to provide internet access in India, but its misconceived Free Basics program was effectively banned for violating net neutrality.