In business joining hands with other overseas flourishing companies is not a new thing. After Facebook, Microsoft is seeking a stake of $2Billion in jio platforms. Lately, it has been a platform that is attracting the highest amount of investment.
Before understanding the reason of this investment, let’s know why only jio platform and why not other companies.
Jio platform runs Reliance Jio, Jio fiber, My Jio, Jio TV, Jio Cinema, Jio Saavn, which is owned by Mukesh Ambani is a digital service company. It is a subsidiary of Reliance Industries that was established in 2019. This platform has lately, become the largest telecom network operator overpowering various other top companies like BhartiAirtel, Vodafone, and idea.
Overseas investors are willing to capitalize on jio platform to have their prints on the digital market of India. In the past one month, jio platform has flocked investment of $10 billion from multi-billionaire investors such as Facebook, KKR &Co., Silver Lake, Vista equity partners, and General Atlantic.
Facebook capitalized $5.7 billion and owned a 9.9% stake, $1.5 billion from KKR & Co, $1.5 billion from Vista Equity Partners, $0.87 billion from General Atlantic, and $0.75 billion from Silver Lake.
Lately, according to a Mint report, Microsoft is in mulls to invest $2 Billion to acquire more than 2.5% stake in Jio Platforms. However, the source says that the process is in progress and is yet to be finalized.
The Microsoft and Jio mergers and acquisitions are not something that is new. Last year, in the month of August, Reliance industries have signed a 10-year partnership with Microsft Azure. Mukesh Ambani said that this partnership is an opportunity for SMEs to digitally enable themselves as Jio and Microsoft could provide the toolsets and datasets for the same.
As per this association, Jio will build data centers across India for next-generation computers, top-class storage, and networking that will be hosted in Microsft Azure’s cloud. This cloud service will be provided to small and medium businesses in India.
This partnership can be a boon for India as it will accelerate the digitization and promote the usage of cloud-based services among small, medium, and micro-enterprises. At the time when the association was signed, the reliance accepted to offer Microsoft Office 365 productivity suite and email exchange server support for the small and medium businesses. Also, it would build an exciting new custom solution to serve large companies such as data analytics, cognitive services, blockchain, and artificial intelligence.
Mr. Mukesh Ambani, chairman, managing director and the largest shareholder of Reliance Industries proudly said that India is currently the hub of digital society, and will shortly be among the top 3 economies of the world. Meanwhile, there is also a report that says, Reliance Industries was preparing for an overseas listing of the digital business. However, this might take place in the next 12 to 24 months.
All these enormous investments are a win-win deal for everyone. Slowly, the day is not far when this digital Service Company will take over the entire digital marketplace. This can be a green signal for those who are hoping to have a flourishing SME’s businesses.