Facebook invests $5.7B to partner with India’s mobile giant Jio to help local businesses

Facebook’s major bet on Jio Platforms could create a headache for mobile payments services that have amassed tens of millions of users while struggling to find a business model in the world’s second-largest internet market.

The $5.7 billion investment, Facebook’s second-largest to date, could also further its dominance in India — its biggest market by user count — by expanding the reach of consumer-facing services like WhatsApp and expanding its lead over ByteDance’s TikTok, which has amassed more than 250 million Indian users in two years.

Facebook and Jio executives said their companies will work together to build solutions; their biggest synergy would revolve around JioMart and WhatsApp,  given that Reliance Jio is India’s top telecom network with more than 380 million subscribers.

One of those collaborations may allow users to find local stores around them on WhatsApp, talk to store operators and place orders from within the Facebook-owned instant messaging service, said Ajit Mohan, a Facebook VP who spearheads the company’s business in India, in an interview with TechCrunch.

Source
https://techcrunch.com/2020/04/22/facebooks-5-7-billion-bet-on-indian-giant-jio-spells-trouble-for-amazon-and-flipkart/

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