4 days ago Facebook announced a Rs 43,574 crore ($5.7 billion) investment in Mukesh Ambani-led Jio Platforms Limited for a 9.9% stake. This is the largest investment for a minority stake by a tech company anywhere in the world.

But before we see the reason, let us see what Reliance is planning to do with its complete set of companies and tech suite solutions. ( I had made a wild forecast that Reliance may very well create an app like Wechat almost 2 years back.)

So basically, Reliance is planning to go the Tencent way by creating a WeChat type super app that will house all the super apps!

Such an app would provide Reliance with -

B2C engagement for its consumer businesses, and

provide the group insights on users’ spending habits,

Now Facebook wants to monetize one of the largest digitally and economically growing countries in the World which is India. Our demographic setup is such that most of our population is young! (India's demographics setup is the envy of the world. As populations in countries such as China, the US, and Japan are getting older, India's population is getting younger. In theory, this increase in working-age population should generate a “demographic dividend" that can power economic growth)

At the same time, Facebook benefits through all of the below -

Access to over 370 million Jio subscribers

Partnership with one of India’s largest tech companies with a play in telecom services and infrastructure, cloud storage (JioCloud), digital entertainment (JioTV and Jio Cinema), payments (MyJio), communication (JioChat), cybersecurity (JioSecurity), e-commerce (JioMart), health tech (JioHealth-Hub) and IoT (JioMotive for smart car connectivity), and the opportunity to launch new products (e.g., Lasso) through Jio’s vast customer base.

What’s more, is that both the companies may very well collaborate on future technological plays such as -

Internet of Things (IoT)

virtual reality (VR)

5G Technology development (Jio has, reportedly, developed its own end-to-end 5G technology, and has sought the approval of the Telecom Authority of India (Trai) for 5G trials.)