Google will acquire a 7.7% stake in Jio Platforms for $65 Million, the culmination of a series of foreign acquisitions that cumulatively put more than $20 billion into the technology and telecommunication arm of Reliance Industries.
“We are delighted to welcome Google as a strategic investor in Jio Platforms. We have signed a binding partnership and an investment agreement under which Google will invest Rs 33,737 crores for a 7.7 per cent stake in Jio Platforms,” RIL Chairman Mukesh Ambani said at the company’s annual general meeting.
Pichai added that the investment in Jio Platforms is the highest out of the amount of Rs. 75,000 crores to be pumped into the Indian economy over the next five to seven years.
Ambani said the Jio-Google collaboration is committed to making India 2G-mukt (2G-free) and the two companies will jointly create an entry-level 4 G, or even 5 G smartphone, for a fraction of its current cost.
The Indian conglomerate ‘s telecom arm also recently sold its small stake to Intel’s investment arm at Rs. 1,894.50 crores. The fresh investment is a Rs. 75,000 crores worth part of Google’s India Digitisation Project.
California-based Alphabet Inc. joins Facebook Inc., which opened the investment process at Jio Platforms by selecting 9.99 percent stake for €443,573.62 crore, as well as chipmakers Intel Corp and Qualcomm Inc.
Google’s investment now shows that technology companies believe that taping into the large number of digital users in India is through the Jio network.
There are various approaches various tech companies have when it comes to collaboration with Jio, but the aim seems to be to provide services while Jio would allow the network and platform.