wordpress blog stats
Connect with us

Hi, what are you looking for?

Reliance will solicit more Facebook-sized investments for Jio Platforms


With crude futures for coming months sometimes going negative due to the COVID-19, this is a surreal time to be in the oil business. But Reliance’s unusual diversification into telecom has given the company a bit of a bright spot. Jio is now worth more than the company’s other businesses put together (in financial markets, that is). The boost is a result of Facebook buying an enormous $5.7 billion stake in Jio Platforms for 9.9% of the holding, which owns Jio as well as all of Reliance’s digital ventures.

  • Reliance will solicit more capital for Jio: After Facebook’s 9.9% stake, “RIL has received strong interest from other strategic and financial investors and is in good shape to announce a similar sized investment in the coming months,” the company said in its press release for Q4FY2020. Amassing capital this way will build a solid base for Reliance to get the next phase of its telecom plans rolled out.
  • Increased focus on telecom and B2C: Reliance is preparing to selling off a significant oil and petrochemicals wing, worth tens of billions of dollars. Now that telecom and home delivery are among the few industries which are likely to survive the throes of this pandemic, the company’s focus on telecom is likely to intensify. With its own $21 billion infusion into Jio Platforms and Facebook’s capital, the company is likely to double down on these businesses. Its existing retail network and size will help it scale.
  • Will Jio deliver? As JioMart pilots in Maharashtra, Jio’s integration with WhatsApp will determine the shape of things to come. Under normal circumstances, JioMart would be a calculated risk with all the competition in place. But Jio’s resources and a sharp uptick in preference for home delivered groceries should give Jio a solid opportunity to make a mark here, and make it fast; in its earnings call yesterday, the company said it would accelerate JioMart’s deployment in the coming months. What’s more, groceries have driven Reliance Retail’s growth in the past quarter (with a year-over-year growth of 107%), so home delivery should boost those revenues further.

The numbers

For the quarter ending March 2020:

  • Over 388 million Internet connections in India, with over 300 million of them monthly active connections.
  • Subscriber ARPU of $1.72 (Rs 130.6) per month.
  • Data Traffic of 1,284 crore GB.
  • Average data consumption per user per month: 11.3 GB.
  • Average voice consumption per user per month of 771 minutes.

RIL Press Release | Jio Press Release

Written By

I cover the digital content ecosystem and telecom for MediaNama.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



The Delhi High Court should quash the government's order to block Tanul Thakur's website in light of the Shreya Singhal verdict by the Supreme...


Releasing the policy is akin to putting the proverbial 'cart before the horse'.


The industry's growth is being weighed down by taxation and legal uncertainty.


Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.


Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ