Internet technology provider Google has agreed to invest $4.5bn in Jio Platforms, the digital services spinoff of diversified India-based conglomerate Reliance Industries, Bloomberg reported today.
Google, part of internet and technology conglomerate Alphabet, will take a 7.7% stake in Jio and plans to collaborate with it on the development of technology including an affordable entry-level smartphone. Alphabet announced plans recently to invest $10bn in India in the next five to seven years.
Jio operates a mobile network and broadband service, as well as about a dozen proprietary apps offering functionality such as music, film and television streaming, cloud storage and chat. It aims to expand into online retail, digital payments, education and healthcare, building an ecosystem modelled on that of China-based Alibaba.
Jio has now raised $20.3bn in funding altogether since being spun off in October 2019. Qualcomm Ventures, the corporate venture capital subsidiary of mobile chipmaker Qualcomm, provided $97.1m for the spinoff three days ago.
Intel Capital, semiconductor producer Intel’s strategic investment arm, had committed $253m to the company just a week earlier, while social media group Facebook injected $5.7bn in funding in April this year.
Jio’s other shareholders include Saudi Arabia’s Public Investment Fund, Abu Dhabi state-owned Mubadala Capital and Abu Dhabi Investment Authority, L Catterton, TPG, Silver Lake Partners, General Atlantic, KKR and Vista Equity Partners.
Google and Alphabet CEO Sundar Pichai said: “Our mission with Android has always been to bring the power of computing to everyone, and we have been humbled by the way Indians have embraced Android over recent years.
“The time is right to increase our commitment to India significantly, in collaboration with local companies, and partnership with Jio is the first step.”
