Facebook on Wednesday announced an investment of $5.7 billion (Rs 43,574 crore) to buy a 9.99 percent stake in Jio Platforms -- a deal that will help RIL cut debt and use WhatsApp to create an Indian ecommerce giant that could rival Amazon and Walmart.

The largest foreign direct investment (FDI) in the technology sector in India will give the US social-networking firm a broader foothold in its biggest global market.

"Today we are announcing a $5.7 billion, or Rs 43,574 crore, investment in Jio Platforms, part of Reliance Industries Ltd, making Facebook its largest minority shareholder," the company said in a statement.

Reliance Industries (RIL) in a separate statement said the investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion). Facebook will be issued fresh equity shares and will get a board position on Jio Platforms. Mukesh Ambani's twin children, Isha and Akash, are also part of the board.

CNBC-TV18's Nisha Poddar caught up with industry veterans like Renuka Ramnath, founder and CEO of Multiples Alternate Asset Management; Sanjay Kapoor, entrepreneur and telecom consultant; TV Mohandas Pai, chairman of Manipal Universal; Rajeev Agarwal of Innoviti; Sajith Pai, director of Blume Ventures and Sudhir Sethi, founding Partner and chairman of Chiratae Ventures, to talk about the of the deal.

Disclosure:

RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

First Published:Apr 22, 2020 6:21 PM IST