Google invests $4.5 billion in India’s Reliance Jio Platforms
Google confirms it is investing $4.5 billion in India's Jio Platforms. Deets here
Google is all set to be a part of Mukesh Ambani‘s Jio Platform. The search giant is investing $4.5 billion for a 7.73% stake in the top Indian telecom network. The news was shared by Reliance Industries chairman Mukesh Ambani on Wednesday. The investment is part of Google’s commitment to invest around $10 billion in India over the next five to seven years.
Google and Jio will be working together to bring in an “entry-level affordable smartphone. The investment in Jio comes as India is attempting to reduce its reliance on Chinese firms.
Google said that it hopes that the investment in Jio will bring smartphones to more users in India. A partnership with Jio, which reportedly has around 400 million subscribers, could help accelerate Google’s efforts.
“Together we are excited to rethink, from the ground up, how millions of users in India can become owners of smartphones,” Google said in its announcement.
This is the first and a rare occurrence where rivals Google and Facebook have invested in the same firm. Facebook has invested $5.7 billion in Reliance Jio Platforms in April this year for a 9.99% stake. Facebook is the largest minority stakeholder in Jio Platforms.
Jio Platforms, a subsidiary of Reliance Industries (India’s most valued firm) has raised about $20.2 billion in the past four months from 13 investors. They have sold about 33% stake in the firm. Besides Google and Facebook, the other investors include Silver Lake, Vista Equity Partners. Also General Atlantic, KKR, Mubadala Investment Company. The others are Abu Dhabi Investment Authority, TPG, and L Catterton.