ByteDance in discussions with India’s Reliance Industries Limited for investment in TikTok

ByteDance, a Chinese giant is having in initial talks with JIO Platforms for supporting TikTok’s business in India with an aim to potentially protect the well-known video app’s fate in its hugest market by end-users, two individuals accustomed with the matter informed TechCrunch.

 

TikTok has been abandoned in India June 29 onwards as a consequence of geopolitical stress with China that caused New Delhi to block the app in conjunction with 58 other Chinese apps over security and privacy issues.

 

India was TikTok’s greatest market apart from China with more than 200 million users. ByteDance employs 2,000 people in the country whose future is associated with the company’s capability to either persuade the government to allow them to function or sell itself.

 

Reliance and ByteDance started discussing during some time in late last month and yet have reached a conclusion, the sources stated, requesting secrecy as the talks are private. TikTok’s business in India is being estimated at upwards of $3 billion, one of the sources mentioned.

 

ByteDance did not react to a request for comment. A Reliance representative denied to comment.

 

An investment in TikTok could assist the oil-to-retails giant Reliance, one of the most worthwhile companies in India, to establish deeper connections with users. Reliance operates the telecom business, Jio Platforms.

 

Despite the fact that Jio Platforms has built a strong base of about 400 million users in India in a period of just four years since its emergence, its consumer-facing apps have battled to reproduce that appeal.

 

Since late April 2020, the Indian giant’s digital venture has grown by nearly $20 billion from 13 high-profile investors, consisting of Facebook and Google. Google stated that it would together work with Jio Platforms to launch a personalized version of its Android mobile operating system to power low-cost Android smartphones. Facebook stated that it would associate with Reliance with an aim to digitize India’s 60 million small and medium-sized businesses.

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