According to foreign media sources, social media giant Facebook will invest 435.74 billion Indian rupees ($ 5.7 billion) to buy 9.99% of Jio Platforms. Jio Platforms is a subsidiary of Reliance Industries Limited (RIL), India’s largest private company.

Once the transaction is approved by the regulator, Facebook will become the largest minority shareholder of Jio Platforms. This investment is a huge bet placed by Facebook in the developing market. It is also the largest investment in the social networking giant’s history, and it is also the largest overseas direct investment in the Indian technology sector to date.

Dario Talmesio, an analyst at market research company Omdia, said: “With this transaction, the line between utilities and platform business has become blurred. Essentially, through this transaction, we may see a shift in telecom operators. As the first example of a digital commerce platform, after years of worrying that the opposite will happen in the industry. ”

Through this cooperation, Jio can reduce the debt of about 400 billion Indian rupees (5.2 billion US dollars). For Facebook, which has regarded India as one of its largest markets, it promised to further cooperate with Indian citizens, especially small and medium enterprises in the country.

Jio Platforms officially launched 4G network services in India in 2016, and became the largest mobile network enterprise in India in less than 4 years. It is also the third largest mobile network enterprise in the world, with 380 million users.

Facebook has 300 million users and a lot of business in India. In addition, its own messaging service WhatsApp has more than 400 million users in the country, and has developed a variety of tools for small businesses, including payment systems. Facebook has also created a digital storefront to allow entrepreneurs to sell goods and services online. Facebook hopes that cooperation with Jio Platforms will promote interaction with small businesses in India.

Facebook CEO Mark Zuckerberg said in a blog: “India is undergoing a major digital transformation, and organizations like Jio have played an important role in bringing hundreds of millions of Indians and small businesses online. At this stage, The blockades around the world, many entrepreneurs need digital tools, they can rely on these digital tools to find and communicate with customers to develop their own business. This is where we can help, so we work with Jio to help India people and businesses create new opportunities. ”

Analysis believes that although it is not clear yet, Jio-Facebook’s investment may indirectly affect India’s already tense telecommunications industry. If the products it develops attract small businesses to move to Jio, the move may raise concerns that the Indian telecommunications industry will become a duopoly or even a monopoly.

In addition to Facebook, Jio recently announced a partnership with Microsoft to provide its services to small businesses.