Qualcomm Ventures, mobile chipmaker Qualcomm’s corporate venturing unit, agreed yesterday to invest up to Rs 7.3bn ($97.1m) in Jio Platforms, the digital services provider spun off by India-based conglomerate Reliance Industries.
The deal will give the unit a 0.15 % stake in Jio and value it at about $64.7bn. It comes after semiconductor and data technology provider Intel paid $253m for a 0.4% stake through subsidiary Intel Capital earlier this month.
Jio is developing a mobile video network designed to support 5G, the latest standard for cellular networks, which is being introduced worldwide and which is expected to significantly accelerate wifi speeds and data support.
The network’s customer base is built on the 388 million subscribers for Reliance’s mobile network, Jio Infocomm.
Qualcomm CEO Steve Mollenkopf said: “With our shared goal of extending the benefits of digital connectivity to everyone and everything, we anticipate Jio Platforms will deliver a new set of services and experiences to Indian consumers.
“With unmatched speeds and emerging use cases, 5G is expected to transform every industry in the coming years. Jio Platforms has led the digital revolution in India through its extensive digital and technological capabilities.”
Jio Platforms has now raised a total of $15.8bn since being formed by Reliance in October 2019, social media group Facebook having invested $5.7bn in the spinoff in April this year at a $57bn valuation.
Other investors in Jio include Saudi Arabia’s Public Investment Fund the Abu Dhabi government-owned Mubadala Capital and Abu Dhabi Investment Authority, General Atlantic, KKR, L Catterton, TPG, Silver Lake Partners and Vista Equity Partners
Trilegal was legal counsel for Qualcomm Ventures on the deal while AZB & Partners and Davis Polk & Wardwell were retained by Reliance Industries for the same purpose. Morgan Stanley was financial adviser for Reliance.
