October 5, 2022
Jio Rs.  33,737 crore investment from Google for 7.7 percent stake

Google is investing Rs. Reliance Industries Limited (RIL) on Wednesday announced a 7.7 percent stake in Jio Platforms for Rs 33,737 crore. The new development will cost Jio Platforms Rs. Arrived a few days after receiving it. 730 crore investment from Qualcomm Ventures. The telecom arm of the Indian conglomerate also recently sold its small stake to the investment arm of Intel for Rs. 1,894.50 crore. The latest investment is a part of Google’s India Digitization Fund of Rs. 75,000 crores.

As a result of Google’s investment, Jio Platforms has raised a total of Rs. 1,52,056 crore by selling 32.94 per cent stake to various foreign investors.

“Today, we have signed a binding partnership and an investment agreement with Google,” Mukesh Ambani, chairman and managing director of Reliance Industries, said while addressing investors at the company’s 43rd Annual General Meeting (AGM). The transaction is subject to regulatory and other customary approvals.

To reiterate, the latest investment is a part of Google’s digitization fund that the search giant announced at the Google for India virtual event on Monday.

Jio Platforms and Google have entered into a strategic agreement to develop an Android-based operating system and bring an entry-level Android smartphone with the Google Play Store. However, details regarding the launch of the new offerings are yet to be revealed.

Google CEO Sundar Pichai as a guest during Reliance’s AGM said, “Getting technology into the hands of more people, it’s Google’s mission to organize the world’s information and make it universally accessible and usable. a big part of it.” “Through this partnership with Jio Platforms, we see an opportunity to make an even greater impact that a stand-alone company can have. This partnership is an important part of the next chapter in Google’s investment in India.”

Pichai said the investment in Jio Platforms is the largest since Rs. 75,000 crore quota which will be injected into the Indian economy in the next five to seven years.

Other Major Investments
Earlier this week, Qualcomm Ventures announced the acquisition of 0.15 per cent stake in Reliance’s Jio Platforms. 730 crores. That partnership was specifically intended to help “roll out advanced 5G infrastructure and services to Indian customers”, although the government has yet to launch 5G auctions in the country.

Apart from Qualcomm, Intel and Facebook are the other two tech companies that have invested in Jio Platforms in the last three months. The telco also attracted global equity firms including Silver Lake, TPG, and El Caterton, as well as wealth funds such as the Abu Dhabi Investment Authority (ADIA) and the Public Investment Fund (PIF) of Saudi Arabia.

Reliance Industries has cumulatively made a total of Rs. 2,12,809 crore, which is Rs. more than net debt. 1,61,035 crore at the end of the financial year, 63-year-old Ambani said at the AGM.

“This is unprecedented in the history of capital markets in India, in fact, there will be little parallels globally,” he said.

Jio Platforms has helped Reliance emerge as a zero-debt company in the Indian economy, thanks to its large user base. The telco initially attracted a large number of customers by offering affordable 4G data connectivity. However, it changed the business and expanded its reach by introducing solutions including Jio Fiber and JioMeet.

JioMeet solution saw 50 lakh downloads within a few days of launch, Ambani told investors at the AGM. The video conferencing solution was initially spotted in May, although it officially debuted earlier this month. It was initially a joke of video conferencing app zoomAlthough it recently received an update to differentiate the experience somewhat.

Will WhatsApp get the killer feature every Indian has been waiting for in 2020? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts either RSSDownload the episode, or just hit the play button below.

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