Facebook’s 43,000 Crore Jio Investment Could Make Reliance Industries A Zero Net Debt Company By 2021: ReportReliance Industries chairman Mukesh Ambani at a Jio event (digit.in)

Facebook's over Rs 43,000 crore investment in Jio Platforms would help Reliance Industries (RIL) in its movement towards becoming a zero net debt company by March 2021, a Credit Suisse report said on Monday (27 April).

"Deal cash flow would help RIL bring down overall net debt and help to move towards its target of achieving zero net debt by Mar-2021," the report said.

Facebook would acquire 9.99 per cent stake in Jio Platforms with an investment of Rs 43,574 crore.

Other than the reduction in debt, Reliance Industries would be benefitted on the technological front.

The report noted that the large user base of WhatApp could significantly accelerate adoption of the JioMart app.

It further said that Facebook has commercialised multiple VR devices and has video calling device like Portal. Both can work well with Jio's broadband offering and Portal can also work with Enterprise solution, it said.

On the benefits for Facebook from the deal, Credit Suisse said that its partnership with the largest retail player in India would strengthen its commerce offering. Further Jio's ready telecom infrastructure would be the backbone for Facebook''s new age products.

This news has been published via Syndicate feed. Only the headline has been changed.

Also Read: Reliance’s E-Commerce Venture JioMart Goes Live On WhatsApp In Mumbai’s Thane, Kalyan And Navi Mumbai Areas

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement