Google, the largest Internet technology company, will invest Rs. 33,737 crore for a 7.7 percent stake in Jio Platforms.
It is the fourth strategic investment after Facebook, Intel and Qualcomm and overall record 14th investment deal in 13 weeks and this marks a company’s largest continuous fundraising activity anywhere in the world. In a series of investment deals, Reliance Industries Limited has now sold 32.94 percent stake in Jio Platforms and raised Rs. 1,52,055.45 crore.
Jio has now drawn three sovereign funds, as well as the six most esteemed technology and financial investors. Besides bringing in cash the four strategic partners will also play a strategic role in shaping Jio ‘s future.
All investments were finalized in the middle of a global lockdown, a reference to the immense digital potential of India, and a clear affirmation of Jio’s aggressive policy, tech skills, transformative corporate structure, and structural long-term growth prospects.
Google has empowered millions of Indians to access helpful information and, like Jio, is a force for change and innovation. We welcome Google onboard and are excited about our partnership for what it can deliver to Indians, from universalising Internet usage to deepening the new digital economy and providing a prime mover to India’s economic growth. Together, we hope to play a strong facilitative role in the transformative journey of building a new, Digital India.
Mukesh Ambani (Reliance Industries)
Investment by Intel’s comes at an equity valuation of Rs. 4.91 lakh crore and enterprise valuation of Rs. 5.16 lakh crore. This investment is followed by the investment of Qualcomm of a 0.15 percent stake for Rs. 730 crore.
Facebook bought a 9.99 percent stake for Rs. 43,574 crore on April 22 which started the series of investments in Jio Platforms. After that, General Atlantic, Silver Lake (two investments), Vista, KKR, Mubadala, ADIA, TPG, L Catterton, PIF, Intel Capital and Qualcomm Inc have also spent their capital in Jio.
Reliance Industries, and Jio Platforms in particular, deserve a good deal of credit for India’s digital transformation. The pace and scale of digital transformation in India is hugely inspiring for us and reinforces our view that building products for India first helps us build better products for users everywhere. Google is proud to invest ₹ 33,737 crore into Jio. I am excited that our joint collaboration will focus on increasing access for hundreds of millions of Indians who don’t currently own a smartphone while improving the mobile experience for all.
Sundar Pichai, CEO, Google and Alphabet
As of now, RIL raised Rs 2,12,809 crore through the Rights Issue, all combined investments in Jio Platforms and BP’s investment. This is much more than RIL Net-Debt of Rs 1,61,035 crore which was at the end of FY19-20.
With nearly 400 million subscribers, Jio Platforms is a next-generation technology platform focused on providing high-quality, affordable digital services across India.
Jio has made substantial investments through its digital ecosystem, powered by leading mobile networking technology, smart apps, edge and cloud technology, big data analytics, AI, IoT, virtual / augmented reality and blockchain.
Follow Us on Instagram for awesome tech stuff. Also, Join our Telegram Group and connect directly with Admin.