How Facebook Plans to Turn WhatsApp Into a Moneymaking Business
Facebook will spend billions of dollars to acquire a stake in India’s largest mobile operator.
The deal will allow the US company to acquire a 9.99% stake in Jio Platforms, the Indian billionaire’s digital technology firm Mukesha Ambani.
Jio Platforms owns several services including Reliance Jio, a mobile network that has spread throughout India in just a few years of existence. Today it has 388 million subscribers. Such rapid popularity in the local market forced all the closest competitors to unite or reduce tariffs.. Apps where users can watch movies, shop online and read news are also owned by Jio platforms..
In addition, the company has a commercial partnership with WhatsApp..
Partnership is being implemented at a key time for the Indian tech market. The segment is growing, but at the same time it becomes more and more tough for foreign companies. In the current environment, Facebook must forge an alliance with key Indian partners if they want to gain a foothold in this market. All this requires huge investments at a time when the global economy teeters on the edge of the abyss..
Mark Zuckerberg noted that India is home to the largest Facebook and WhatsApp communities.
«India also has over 60 million small businesses, and many of them are in need of digital tools they can rely on to find and communicate with customers and grow their businesses. That is why we are partnering with Jio. Our goal is to help people and businesses in India create new opportunities», – he added.
In a video message, Ambani outlined a wide range of new tools, stating that in «very near future» the link between JioMart, the company’s e-commerce platform, and WhatsApp will enable nearly 30 million small Indian stores to make digital transactions with every customer in their area.
Indian billionaire called it «recipe for victory», which will eventually be extended to other key stakeholders in Indian society such as agricultural enterprises, SMEs, education, and healthcare providers.
India is in full swing internet boom. It is the second largest smartphone market in the world and boasts hundreds of millions of users wanting buy goods online, listen to music and watch online video.
However, there is still plenty of room for growth. Almost 600 million people in the country have not yet got access to the Internet.
That is why such companies like Alibaba, Amazon, Google, Tencent, SoftBank and countless other tech giants are investing billions of dollars in this market.
Facebook’s total investment in Jio platforms is estimated at nearly $ 66 billion, according to Reliance. The deal is subject to regulatory approval.