Google to invest $4.5B in Jio to serve rising internet users in India

Date: 2020-07-17   Author: Saipriya Iyer  Category: #news

Google to invest $4.5B in Jio to serve rising internet users in India

Google, a multinational technology giant, is planning to invest $4.5 billion in Jio Platforms, a subsidiary of Reliance Industries Limited (RIL). Through this investment, Google will join the list of global investors, which includes Facebook, that are seeking to exploit the rapidly expanding market of internet users in India.

The transaction, which is subject to regulatory & other approvals, will enable Google to obtain a 7.73% stake in Jio Platforms, at the valuation of $58.9 billion (?4.43 trillion). This will mark the biggest investment made by the technology giant in an Indian company.

With the recent investment, Jio has raised a $20.2 billion (?1.52 trillion) in total by selling around 33% of its stake to 13 financial & strategic investors in 11 weeks. All these transactions have enabled RIL to pay off the net debt ahead of its March 2021 target.

As per Jio Platforms and Google’s statement, the two companies will collaborate to develop an affordable, entry-level smartphone, with the optimizations of the Android operating system & Play Store. According to RIL, Jio Platforms will leverage the global opportunity and increase its revenue share from both the domestic & global markets.

Jio Platforms, with over 388 million users, houses RIL’s digital assets such as big data analytics, cloud & edge computing, broadband connectivity, and AI. The deal will also enable the companies to deploy their existing digital services and capture a significant share in the emerging digitalization market.

Google and Alphabet’s Chief Executive Officer, Sundar Pichai, has cited that Jio Platforms and RIL play a considerable role in digital transformation in India. The technology company is excited to enter the collaboration that will help focus on catering to the part of the Indian population that does not own a smartphone currently as well as improving their overall mobile experience.

Source credit:

https://www.livemint.com/industry/telecom/jio-platforms-raises-4-5-billion-from-google-11594865585388.html



About Author


Saipriya Iyer linkdin-boxtwitter

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

Post Recommendents

Cardiac Resynchronization Therapy (CRT) Devices Market to 2026 - Growth Trends and Revenue Statistics

Author: Rahul Varpe

A highly analytical qualitative as well as quantitative evaluation of the Cardiac Resynchronization Therapy (CRT) Devices Market has been covered in this report. The study evaluates the myriad aspects of this industry by taking into consideration ...


Medical Products Market Growth Rate, Revenue and Demand Analysis to 2026

Author: Rahul Varpe

An extremely definite evaluation of the Medical Products Market in terms of qualitative as well as quantitative analysis has been covered in this report. The myriad aspects of this industry, having considered its historical and forecast data have ...


Intensive Care Beds Market - Geography Insights and Opportunity Analysis to 2026

Author: Rahul Varpe

The latest study provides an in-depth analysis of the Intensive Care Beds Market focusing on various market definitions, segmentations, sub-segmentations, products, as well as applications. The report further details of the competitive landscape &...