Google to invest Rs 33,737 crore for 7.73% stake in Jio Platforms

The two companies will collaborate for the development of entry-level affordable 4G and 5G smartphones as well as Android-based operating systems, Ambani announced during the virtual AGM.

Reliance Industries (RIL) Chairman Mukesh Ambani on Wednesday announced a strategic partnership with Google and development of in-house 5G solutions, in a bid to win over new customers and create a platform for future growth.

Google will invest Rs 33,737 crore for 7.73 per cent stake in Jio Platforms. The two companies will collaborate for the development of entry-level affordable 4G and 5G smartphones as well as Android-based operating systems, Ambani announced during the virtual annual general meeting (AGM).

“Our investment of $4.5 billion in Jio is the first — and biggest — that we will make through this ($10 billion) fund. I am excited that our collaboration will focus on increasing access for hundreds of millions of Indians who don’t own a smartphone, while improving the mobile experience for all at the same time,” said Google CEO Sundar Pichai in a video message.

With the latest investment, Jio has raised Rs 1.52 trillion, selling 32.97 per cent stake to 14 investors including Facebook, private equity (PE) firms and sovereign wealth funds in the process.

While the investments from PE firms and wealth funds were made at a valuation of Rs 4.91 trillion, Google’s stake purchase values Jio at Rs 4.36 trillion.

Jio disrupted the telecom market with its ultra-cheap data plans after its launch in 2016, and is now preparing for the next level of growth. Its strategy includes acquiring 300 million 2G network users by offering them affordable phones and launching new products for connectivity and entertainment. At the AGM, RIL announced Jio Glass, a mixed reality application for office meetings and education.