It all started on April 22, when India was at the height of its Covid-19 foreclosure. A press release from Reliance Industries, the parent company of Reliance Jio, landed in the inbox of most journalists in India covering the tech and telecom industries. The press release announced that social media giant Facebook had taken a 9,9% stake with Jio Platforms for a whopping investment of $5.300 billion (Rs 43.574 crore). Even if there were murmurs in news circles that Facebook was looking to invest in Jio Platforms, no one really saw how much money Mark Zuckerberg's team was ready to invest. It was amazing, to say the least. Since then, there has been a steady stream of large-scale tech investors pouring money into Jio platforms. In total, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced total investments of €10.35 billion (Rs 78,562) crore in Jio Platforms for a combined 17% stake. The list does not end there. Microsoft is apparently interested in Jio. Additionally, Abu Dhabi-based sovereign wealth manager Mubadala Investment Co. is expected to invest €1 billion in Jio. This raises the obvious question: why are Jio platforms so attractive to everyone, even in these recessionary times?
Jio growth and valuation
Jio Platforms, a wholly owned subsidiary of Reliance Industries digital assets, is a technology platform focused on providing high-quality, affordable digital services across India, with more than 388 million subscribers. Led by the richest person in Asia, Mukesh Ambani, Jio Platforms has made significant investments in its digital ecosystem, thanks to cutting-edge technologies covering broadband connectivity, smart devices, cloud and computing. state of the art, big data analysis, artificial intelligence, Internet of things, augmented and mixed reality and blockchain. Jio's stated vision is to enable a "Digital India" for 1.300 billion people and businesses across the country, including small traders, micro-businesses and farmers. Jio Platforms' journey began as early as 2010 in the form of a company called Infotel Broadband Services Limited (ISBL), which spent €2.7 billion to license across India during the controversial broadband spectrum auction. But even then, the Market rumors were that ISBL was being financed by Mukesh. In all cases, Reliance Industries moved in quickly, earning a 95% stake. In 2013, ISBL officially changed its name to Jio Platforms, which is operated by Reliance Jio Infocomm Limited as a wholly owned subsidiary.Jio, a game changer
Once Mukesh stepped in, the Indian telecom industry was no longer the same. His aggressive business manner has practically revolutionized digital consumption in India. Jio's phone and data services launched in 2106, simply called Jio, have disrupted the market with their disruptive methods. Half a billion Indians are said to have gone online for the first time in the last ten years, largely due to Jio's arrival on the scene. Jio offered free calls and data services at unbelievably low prices, which more or less pushed the competition to the margins. Mukesh, of course, has pumped €33 billion into building a nationwide 4G broadband service network. In addition to offering its 4G LTE network at staggering prices, Jio has also forged ties with mobile carriers like Lyf and offered a suite of phones and call and data connections at prices that can't be matched. by competition In less than four years, Jio has amassed a subscriber base of over 388 million. This fiery aggressiveness caused the competitors to run indoors. Reliance Communications, Mukesh's brother, Anil Ambani, had to go out of business entirely. Vodafone and Idea have merged to face the assault as a single entity. Bharti's Airtel, which had the forerunner advantage, put up a valiant battle. But the competitors are bleeding, while Jio is now trying to change gears.Jio's ambitious plans
Call and data services are just part of the big pie currently facing the Jio platforms. It has a host of digital apps and services in its stable, including JioSaavn music streaming, JioTV's live on-demand TV service. Jio also plans to bring new movies into people's homes the same day they hit theaters. Jio has also entered the gaming category, unveiled a video call assistant to automate customer support, and signed a deal with Microsoft to subsidize Office 365 and Azure for small businesses in India. Then there is their JioMoney payment app. And, of course, the new Jio Mart, which is expected to cause major upheavals in the Indian e-commerce arena. Now, Jio Platforms' battle lines are being drawn against Amazon India, Walmart's Flipkart, Alibaba-backed BigBasket, and Tencent-funded Udaan. As Mukesh pointed out in one of his speeches, "We have created an ecosystem that includes a network, devices, applications and content, platforms, service experience and affordable prices so that everyone can live the Jio digital life."All eyes on Jio Mart
The size of the online grocery market in India is set at Rs 6.201 crore (€875 million) and is expected to grow exponentially to reach Rs 1.03 lakh crore (€14.6 billion) by 2023. All companies in the fray they know that they are only scratching the surface and therefore reveal ambitious plans to establish themselves. But the disruption that Reliance Jio has caused in the telecom industry may not come so easily in this highly competitive e-grocery market in India. But Jio Mart will soon fight for a new playground: WhatsApp. WhatsApp is the crucial link for Jio Mart. You will likely supply the paid offer (business to consumer), with a logistics network or the kirana store to ensure delivery. And this is where the combination of Jio Platforms with Facebook, which owns WhatsApp, should play a key role. Right from the start, JioMart has the ready user base of 400 million WhatsApp users in India. Jio Mart will also build on Facebook Messenger services and the Facebook app to integrate shopping functionality and reach a broader user base. But for the most part, Jio will leverage WhatsApp for Business for its retailers, with an end-to-end service, unlike now where they have to go to other third-party companies. Facebook CEO Mark Zuckerberg alluded to the goal of the Jio Platforms deal. “India is a special place for us. We are also committed to working together on some critical projects that we believe will open up a lot of business opportunities in India. Facebook and WhatsApp have been trying to attract small and medium-sized businesses (SMEs) on their respective platforms for the past two years.Have you been abroad?
All these developments taking place at breakneck speed are the precursors to the publication of Jio Platforms, in particular with a view to appearing on a foreign platform, probably the Nasdaq.Mukesh Ambani would prepare Jio platforms for an IPO abroad, Bloomberg reports. pic.twitter.com/cTSEyJwfmzMay 26, 2020 Jio Platforms is said to be in talks with some banks to advance this file. According to a Bloomberg report, the offering could take place in the next 12 to 24 months. The belief is that Reliance Industries would sell close to 25% of its stake in Jio Platforms before going public. Reports suggest that Morgan Stanley may be named the lead banker to manage the company's overseas listing. Here is the timeline of Jio platform investments so far: