Google to invest $4.5 billion in Jio Platforms null
Jio Platforms‘ season of joy seems to be getting better and better. And as predicted, tech giant Google is set to investing $4.5 billion (Rs 33,737 crore) for a 7.7% stake in Reliance Industries’ digital subsidiary, Jio Platforms. This was revealed by Reliance Industries chairman Mukesh Ambani at the company’s much-anticipated 43rd Annual General Meeting that was held on a virtual platform — its own video conferencing service JioMeet.
With this announcement, Google becomes the second biggest investor in Jio Platforms. The top-most investor, of course, is its arch rival Facebook which put in $5.7 billion in April for a 9.9% stake.
Google and Jio are partnering to build an Operating System that could power a value engineered, entry-level 4G/5G smartphone, Mukesh Ambani said.
With Google’s gargantuan investment, Jio Platforms has raised over $20.6 billion in the past 13 weeks from 13 investors by selling about 33% stake in the firm.
#RILAGM | Chairman #MukeshAmbani’s vision for @reliancejio over the next 3 years pic.twitter.com/xa5o2Hf9ZfJuly 15, 2020
Google and its commitment
Google and Jio are partnering to build an Operating System that could power a value engineered, entry-level 4G/5G smartphone.
Mukesh Ambani
On Monday, Google Alphabet’s CEO Sundar Pichai had stated that his company was commiting itself to an investment of $10 billion in India over a time frame of 5 to 7 years. And just in two days, Google has put in nearly 50% of that said ammount in a single company.
Tech biggies like Facebook and Google making huge investments reflect their confidence in Jio Platforms as well as the Indian market as much.
At a time when Indian economy is reeling precariously due to the Covid-19 impact, such votes of confidence from foreign investors augur well for the country to bounce back quickly.
Jio Platforms has amassed nearly 390 million subscribers to become the top carrier in the world’s second largest internet market in less than four years of its existence.
Jio Platforms also offers other digital services like music streaming player and a video conferencing app.
Reliance Industries has become a net debt free company, well before the scheduled date of March 31, 2021, by selling more than 25 per cent stake in Jio Platforms and unveiling a rights issue of Rs 53,124 crore.
#RILAGM | Another major announcement from CMD #MukeshAmbani on the 5G front, says this 5G product will be available for trials as soon as spectrum is available#5GIsTHEFUTURE pic.twitter.com/jLEx078LEoJuly 15, 2020
Jio and 5G
Meanwhile, Mukesh Ambani also said that Jio has developed made-in-India 5G platform. “The new platform developed from scratch will enable Jio to launch a world-class 5G service in India,” Ambani said.
Once the platform has achieved scale, Jio will start offering the 5G network infrastructure services to telecom services.
Aside from Google, the other investors in Jio Platforms include Facebook, Silver Lake (1 and 2), KKR, Vista Equity Partners, General Atlantic, Mubadala, Abu Dhabi Investment Authority, TPG, L Catterton, PIF and Intel Capital, and Qualcomm Ventures.
Jio Platforms‘ season of joy seems to be getting better and better. And as predicted, tech giant Google is set to investing $4.5 billion (Rs 33,737 crore) for a 7.7% stake in Reliance Industries’ digital subsidiary, Jio Platforms. This was revealed by Reliance Industries chairman Mukesh Ambani at the company’s…
