This investment will be part of Google’s recently announced $10 billion India digitization fund. Internet major Google is buying a 7.73% stake in Reliance Industries’ telecom and digital unit Jio Platforms for $4.5 billion as part of its recently announced $10 billion India digitization fund.
RIL’s telecom and digital unit, which mirrors the Alphabet-Google structure, has got investments worth about Rs 1.18 lakh crore ($15.7 billion) in just over two months for a total stake of about 25.24%.
On Monday, US chipmaker Qualcomm became the latest to join a slew of technology-focused investors acquiring a slice of Jio.
India is a key market for the likes of Google and Facebook. The number of internet users in India is expected to rise to about 850 million in 2022, according to PwC, up from 450 million in 2017. Google dominates search, video, maps and email in India. Nine out of 10 smartphones sold in India come with Google’s Android OS.
The funds have helped RIL pare debt. The oil-to-retail-telecom conglomerate said in June that it became a debt-free company after the first 11 back-to-back investments in Jio Platforms and a Rs 53,124-crore rights issue.
RIL has been making efforts to position Jio Platforms and its telecom venture R Infocomm as more digital, consumer technology companies, with experts saying key investors it has brought on board underline that strategy.
Courtesy: Economic Times