In April, Facebook announced an investment of $5.7 billion in the Jio Platform, a major part of Reliance Industry Limited. This investment made Facebook – the largest shareholder in Reliance Industry. This deal with Jio allows Facebook’s Whatsapp integration with JioMart which will help to connect with businesses, shops, and local kiranas which ultimately increase purchases with the effortless mobile shopping experience. If this alliance succeeds in onboarding thousands of businesses with the social media tech giant, would seek more partnership in India. And even helps expand globally.
Ambani tied up with Zukerberg to expand the e-commerce arms of the Reliance Industry, and enable about 30 million Kirana stores across India to transact digitally within their neighborhood. In the future, the company is even hoping to extend its services to farmers, teachers, students, and SMEs.
Mark Zuckerberg in his interview said that “a big part of a partnership that we have with Jio will be to wire up and get thousands of small businesses across India on-board onto WhatsApp, to do commerce there. Once this will work, we are planning to expand it to more folks in India and even in different countries.” It seems like he is very excited about this opportunity. Facebook has been waiting for this deal to sanction for a very long time, as to enter the broadband connections in India.
The new WhatsApp payment system has been developed by the National Payment Corporation in India, WhatsApp pay, which is designed to run on the Unified Payment Interface (UPI). This feature allows us to do the transaction on an individual basis as well as business transferring through bank accounts and offers a more holistic buying experience. The National Payment Corp of India informed RBI, that Whatsapp pay is now ready to meet the localization payment rules. Jio’s partnership with Facebook can lead to a crucial development that will bring consolidation in India’s payment sector.
Earlier this month, WhatsApp announced that they have now 15 billion businesses across India, the chat platform business-facing part. The social giant offering messaging commerce-enabling customers to shop online with integrated payment facilities – shows signs of developing country in terms of technology.
It is a good idea to use a messaging app like Whatsapp, which is hugely popular especially in India, which drives a huge opportunity for small businesses and individuals in India to buy and sell things Whatsapp. This will help both Facebook and Jio to expand its reach.
Meanwhile, Facebook is making a lot of revenue as more businesses are moving online during a pandemic and using digital advertising tools to bring traffic to their websites or blogs. Facebook’s total quarterly revenue rose to $18.69 billion from $16.89 billion beating the analyst estimates of $17.40 billion.
This partnership is helping Facebook to get access to more data. That is all he wants! Even if the partnership ends up flopping, it will give the potential direct pipeline into the data of India’s small and medium businesses and users of Jio’s network. That would mean more intense and localized insights into the consumption patterns of Indian customers. This, in turn, gives Facebook a new perspective on Indian consumers, this data will only be added to its already formidable advertising machine. The data we are talking about here is 600 to 700 million unique users.
Facebook had a good reason to focus on the Indian Market, as it is banned from China and India’s digital sphere has been growing rapidly.