Google to invest Rs. 33,737 crore in Jio platforms for a 7.73% stake
Mumbai/IBNS: Reliance Industries Limited, Jio Platforms Limited and Google LLC on Wednesday announced the signing of binding agreements for an investment of Rs. 33,737 crore by Google into Jio Platforms.
This investment by Google values Jio Platforms at an equity value of Rs. 4.36 lakh crore. Google’s investment will translate into a 7.73% equity stake in Jio Platforms on a fully diluted basis. With this, the total investment from financial and strategic investors into Jio Platforms stands at Rs. 1,52,056 crore.
The investment will build on Jio’s and Google’s existing efforts to expand the benefits of digitization across the length and breadth of India, beyond the current 500+ million Internet users in the country.
Jio Platforms and Google have also entered into a commercial agreement to jointly develop an entry-level affordable smartphone with optimizations to the Android operating system and the Play Store.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “Google has empowered millions of Indians to access helpful information and, like Jio, is a force for change and innovation."
"We welcome Google onboard and are excited about our partnership for what it can deliver to Indians, from universalising Internet usage to deepening the new digital economy and providing a prime mover to India’s economic growth. Together, we hope to play a strong facilitative role in the transformative journey of building a new, Digital India,” said Ambani.
Speaking on the investment, Sundar Pichai, CEO of Google and Alphabet, said, “Reliance Industries, and Jio Platforms in particular, deserve a good deal of credit for India’s digital transformation. The pace and scale of digital transformation in India is hugely inspiring for us and reinforces our view that building products for India first helps us build better products for users everywhere."
"Google is proud to invest Rs.33,737 crore into Jio. I am excited that our joint collaboration will focus on increasing access for hundreds of millions of Indians who don’t currently own a smartphone while improving the mobile experience for all," he added.
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