Facebook’s Jio investment to help RIL move to zero debt: Report

New Delhi: ¬†Facebook’s over Rs 43,000 crore investment in Jio Platforms would help Reliance Industries (RIL) in its movement towards becoming a zero net debt company by March 2021, a Credit Suisse report said on Monday.

“Deal cash flow would help RIL bring down overall net debt and help to move towards its target of achieving zero net debt by Mar-2021,” the report said.

Facebook would acquire 9.99 per cent stake in Jio Platforms with an investment of Rs 43,574 crore.

Other than the reduction in debt, Reliance Industries would be benefitted on the technological front.

The report noted that the large user base of WhatApp could significantly accelerate adoption of the JioMart app.

It further said that Facebook has commercialised multiple VR devices and has video calling device like Portal. Both can work well with Jio’s broadband offering and Portal can also work with Enterprise solution, it said.

On the benefits for Facebook from the deal, Credit Suisse said that its partnership with the largest retail player in India would strengthen its commerce offering. Further Jio’s ready telecom infrastructure would be the backbone for Facebook’s new age products.