Facebook & Jio Tie-up: The Layers Unfolded
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| Credit:Source Thise Imgae From Google |
Hello learners in this Blog we are going to cover all the important aspects of the partnership between geo Facebook during the time when other companies were struggling to lure investments reliance group did something different it went on to raise as free of investments from Facebook Silverlake KKR
In april/may well congratulations were in order for both geo and Facebook but why did the steam create such a buzz what made it so massive watch this video till the end to know all the answers to start with let us rewind in time and look back to 2016 the Mark Zuckerberg on Facebook came up for the desire to launch Facebook free basics in India for those who do not know what was the purpose of Facebook free basics let me tell you with the free basics version Facebook wanted to create an open platform where developers could register their sites and the users would not be charged with any internet if they wanted to surf those apps and sites Facebook planned to do it in two ways first it would tie up with the Internet service provider and then the user registered with the concerned ISP could use the Facebook free basics sounds simple and cost-saving right remember we are talking about 2016 when internet charges were high as compared to the MBS one got to use in a month so with something like a free basics version where one would not be charged internet for using Facebook the situation would be great for customers but any are restrained from giving its approval quoting the reason of net neutrality the net neutrality simply implies that there must be no undue advantage given to any single internet service provider in this case the undue advantage would be letting users surf FB without any internet usage through the is be registered with Facebook it's dream to venture into the huge Indian market shattered understanding the significance of the customer be is present in India about two years back Facebook made a second attempt to enter into the Indian market
The Digital payment segment has been escalating so Bethesda monetization Facebook wanted to capture this opportunity through whatsapp pay but till date it has been struggling to launch the service in India going to regulatory hurdles there have been concerns regarding the data storage policy and sharing of sensitive information by whatsapp with its parent entity Facebook for the time being remember these two points as we will connect it with the deal in the latter part of the video it is time to jump into the statistics of the much talked-about geo facebook deal reliance geo has outlawed its competitors like Airtel Vodafone idea etcetera in the telecommunication field over the years it has repositioned itself into the digital sector - it looks as if their vision was beyond providing connectivity they successfully built a good ecosystem of connectivity data technology ecommerce health gaming music with about 20 such apps and services well many more are under testing in 2020 it certainly has bigger plants and striking or one of its kind deal with Facebook is an example of that in April Facebook and geo into partnership after which Facebook agreed to invest forty three thousand five hundred and seventy four crores in geo platforms geo platforms is a unit of Reliance Industries Limited out of this fourteen thousand nine hundred and seventy six cores have been retained by geo platforms and twenty eight thousand five hundred and ninety eight cores have been retained by its parent entity on investing this amount in geo platforms Facebook has acquired a nine point nine nine percent share in it the steely turned heads because of two reasons this is the largest investment by a tech company in other firms for minority stakes for those who do not know minority stake is anything less than fifty percent share of any company second after the steal Facebook has become the largest minority shareholder in geo also it is the largest FDI deal in the Indian technology sector let us now unfold the pages of this iconic deal whenever two business times join hands let us be honest they both have personal motives behind it on one hand we're geo has an impressive customer base of 40 crores in India then Facebook on the other has the intelligence to track the preference of customers for
Example based on what you search more often Facebook tracks your preferences or likings and pushes more advertisements based on what you prefer imagine if both of them conjoined their USBs a boom can surely occur moving on to the benefits that both the parties are expected to gain from the steal let's begin with Geo firstly with the start of 2020 Mukesh Ambani laid out his vision of making reliance industries a debt-free company by 2021 hence the scree of investments and deals the partnership between FB and geo is an all-cash deal the money involved in this deal will immediately be used to pay the debts of the company are you understanding how smartly the pieces are in the place the second advantage is related to the customer base aspect as mentioned in the former part of the video Gio has 388 million users in its pocket whereas Facebook and whatsapp have roughly 400 million and 328 million users respectively you can do the maths here geo success - the number of customers will increase impressively with that it also gets access to the intelligence used by Facebook to trace the Preferences of the customers thirdly the deal will have a positive impact on the revenue incurred by geo as well currently against 120 rupee on an average from each of its users so growth in the number of users we - growth in revenue a simple number game let us now see the benefits Facebook will get from the steel at the beginning of the video we told you about Facebook's attempt to deepen its route into the Indian market majorly with whatsapp tail but it has been facing issues in doing so now they have geo and location Manny's name associated with them this could help whatsapp they passed the regulatory hurdles that it has been facing for a long time secondly at present FB generates about eighty percent of its revenue from advertisements only with the launch of whatsapp pay its source of revenue will increase it would be able to make money from transactions made through whatsapp pay hence the steel would push its revenue to the main motor from these two giants coming together was to pull all Kirana stores together and provide them with a common platform all the benefits we mentioned prior in the video will fall into place with geomod which is a virtual store for online grocery shopping these karana stores will register with geomod which will be available directly on whatsapp thus geometry get access to millions of users directly as a user you will get access to the Kirana stores near you sir for stop and then order your requirements easily also whatsapp will charge a sweet Commission for every transaction you make geomod services have been launched in some areas of Mumbai for testing and it is slowly expanding its business across various Indian towns hope you understood the topic