Jio And Facebook Could Potentially Address $2 Trillion Digital Market

Reliance Jio has recently sold its 9.99 percent stake to Facebook to build a digital ecosystem in India. The social media giant has announced its plans to invest Rs. 43,574 crore into Jio platforms. In fact, Facebook has announced a new company called Jaadhu Holdings for buying a stake in India's largest telecom operator.

"RIL & FB are building an ecosystem (10 key services) each big enough ($5 billion + Total Available Market) to provide important and discrete services to the consumer," brokerage firm Bernstein said. Adding to that, "The core services of the platform are retail/commerce ($1.3 trillion), payments ($700 billion), content/advertising/others ($70 billion) with an overall potential addressable market of $2 trillion + by 2025."

The firm states that there are 600 million internet users in the country, and now it has become the second-largest country in terms of mobile subscribers. Besides, the payment systems are doing well, so there are chances that both companies can expand or open new ways for the digital ecosystem in India.

Reliance Jio And Facebook Might Become Leader In E-Commerce

The firm said that the JioMart will become a leader in the e-commerce space as Reliance Retail is leading in grocery. "Eventually we expect JioMart to be an integrated commerce platform, and include other categories - electronics, fashion, and apparel," it added. However, the report comes at that time when JioMart suspended its operations as there is a lack of workforce.

Furthermore, the brokerage firm pointed out that JioMart is enabling all kirana store owners to get the mPoS services to increase digital transactions in India. The firm also suggested that the market share of the Unified Payment Interface is likely to grow by 55 percent in the next five years.

Recently, the company joined hands with Disney+Hotstar to offer free services with two prepaid plans and two packs. The plans are priced at Rs. 401 and Rs. 2,599 annual plan.