Darr Ke Aage deal hai! This line aptly explains the epic Jio Fb deal between social media giant, Facebook Teleco master, Jio! Experts say that the deal is a win-win situation for both parties! Facebook had its eyes on Whatsapp and it’s a payment service, “Whatsapp Pay” and Jio had its heart on “JioMart”, an online shopping platform while signing this deal!
Let’s dive deep into this deal for a complete understanding!
What is the Jio Fb Deal all about?
Facebook has officially bought a 9.99% stake in Reliance Jio for $5.7 billion which makes it the largest investment for a minority stake by a tech company anywhere in the world. The main focus for Facebook is on it’s messaging platform Whatsapp and it’s payment service, Whatsapp Pay which is still to get clearance from the Government. Jio had its interests in JioMart for its grand entry in the E-Commerce market.
Why the Jio Fb Deal is Important for Jio?
Jio needs to see off its non-current debt to flourish in the business arena. Jio’s debt currently stands at 40,000 crores.Jio is likely to use 1/5th of FB investment in paying off its outdoor obligations.
Next is JioMart. A lot of emphasis has been laid on JioMart – Whatsapp partnership. This partnership will help smaller businesses and ‘Kirana’ stores in a big way. So, forget groffers! All of you can order and get faster delivery of day-to-day items from nearby local shops.
Finally the VR twist! Facebook which Oculus can lend it’s expertise on JioAR and Mixed Reality Division which Jio showcased last year at it’s AGM.
For all music fans, forget gaana.com! Jio’s music division, JioSaavn could be integrated with Facebook to create an wonderful lyric delight! Jio TV and Jio Cinema too will be charged with the advertising prowess of Facebook!
Why the Jio Fb Deal is important for Facebook?
The main focus of Facebook in the deal is one word, ‘Whatsapp’. WhatsApp in India has potency like no other app. This deal will open a window for Whatsapp Pay in India as it can tie with Jio Money to reach an extensive audience. The main target for Whatsapp Pay is to reach the Small businesses in India so that they can expand their current portfolio. This is in tune with Central Government ’s initiatives to boost the MSME sector.
What the Jio Fb Deal means to YOU and ME?
We can all expect a power app that combines all of Jio’s and Facebook’s services into one. So, get ready for a one-stop-shop for everything.
Issues of data privacy still lurk in the corner. This deal also means that Facebook could have access to data that Jio has been able to garner thanks to its smartphone subscriber base. We hope that the two companies will also look into that.
The Final Word…
In the nutshell, this deal is big for both companies. The think tank from both the parties should be applauded for such a bold decision in these challenging times. This deal gives hope for a bright future of Digital India in the days to come! The Digital India will be for all, not just for the elite! For more interesting articles visit here.