The new development comes only a couple of days following Jio Platforms received Rs. 730 crores of investment from Qualcomm Ventures. The telecom arm of the Indian conglomerate also recently sold its little stake to Intel’s investment arm in Rs. 1,894.50 crores. The fresh investment is part of Google’s India Digitisation Fund worth Rs. 75,000 crores.
As a result of Google’s investment, Jio Platforms has increased a total of Rs. 1,52,056 crores by promoting 32.94 percent stake to different foreign investors.
“Now, we’ve signed a binding partnership and an investment arrangement with Google,” Reliance Industries Chairman and Managing Director Mukesh Ambani said while addressing investors at the organization’s 43rd annual general meeting (AGM).
To reiterate, the brand new investment is a part of Google’s Digitalisation Fund the search giant announced in the Google to get India virtual event Monday.
Jio Platforms and Google also have entered a strategic agreement to develop an Android-based operating platform and deliver an entry Android smartphone which has Google Play shop. Details about the launch of the new offerings are not yet been shown, though.
“Getting technology into the hands of more people, it is a big part of Google’s mission to populate the world’s information and make it universally available and usable,” Google CEO Sundar Pichai stated during Reliance’s AGM as a guest appearance. “Through this partnership with Jio Platforms, we see the opportunity to have an even larger effect that either company could have alone. This venture is a key part of Google’s next phase of investment in India.”
Pichai added that the investment in Jio Platforms is the biggest from the Rs. 75,000 crores quota which will be infused in the Indian economy in the next five to seven decades.
Additional key investments
Before this week, Qualcomm Ventures announced the purchase of a 0.15 percent stake in Reliance’s Jio Platforms at Rs. 730 crores. That venture was especially aimed to assist”roll out advanced 5G infrastructure and services for Indian customers”, though the government is to kick off the 5G auction in the country.
Apart from Qualcomm, Intel and Facebook are the other two technology companies which have invested in Jio Platforms in the last three months. The telco also brought global equity firms including Silver Lake, TPG, and L Catterton as well as wealth funds such as Abu Dhabi Investment Authority (ADIA) and Saudi Arabia’s Public Investment Fund (PIF).
Reliance Industries has cumulatively raised a total of Rs. 2,12,809 crores, which is in excess of its own debt of Rs. 1,61,035 crores by the end of the fiscal year, Ambani, 63, stated in the AGM.
“This is unprecedented in the history of capital markets in India, indeed, there could be very few parallels globally,” he added.
Jio Platforms has majorly helped Reliance emerged as a zero-debt company in the Indian market, thanks to its large user base. The telco brought a large number of consumers originally by offering affordable 4G data connectivity. However, it transformed the company and expanded its reach by starting solutions such as Jio Fiber and JioMeet.
The JioMeet solution saw 50 lakh downloads within days of its launch, Ambani told the investors in the AGM. The video conferencing solution was originally spotted in May, albeit debuted officially only earlier this month. It was originally a mock of video conferencing app Zoom, though it obtained an upgrade recently to differentiate the experience to some extent.