Google was trying to spend in Jio back in March
Google intends to get a 7.7% stake in India’s biggest telecom company, Jio Platforms, for $4.5bn.
The holding company of Reliance Jio Infocomm announced the investment through its live-streamed Reliance AGM 2020 and the country manager and VP of Google India, Sanjay Gupta, insured the investment on Google’s website. The investment is currently pending a regulatory inspection.
The move follows Google’s $10bn Indian investment pledge this week, place to happen within the next five to seven years. It is not clear if this investment a part of that promise.
According to Gupta, the arrangement also means that the firm will utilize Jio to create a brand new and affordable mobile smartphone.
Gupta said:”Collectively we are excited to rethink, in the ground up, just how millions of consumers in India can become owners of all smartphones.
“This effort can recreate new opportunities, farther power the ecosystem of software, and push innovation to drive growth for the new Indian market.
“This partnership comes in an exciting but crucial stage in India’s digitization. It’s been wonderful to see the changes in engineering and network plans that have enabled more than half a billion Indians to get online.
“In precisely the identical time, the majority of people in India still don’t have access to the world wide web, and even fewer still have a smartphone so there’s a whole lot more work ahead.”
This is part of’Digital India’ a campaign established by the Indian authorities to have all of the nation online.
In April, Facebook obtained a 9.99 percent equity stake in Jio Platforms. The $5.7bn arrangement allows the social media and advertising company to come up with its own foothold in India and represents one of the largest investments to get a minority stake in a tech company globally. Including Google and Facebook’s investment, Jio has increased around $20bn since April in Qualcomm, Intel, KKR, Silver Lake, Vista, and Mubadala, Abu Dhabi’s sovereign wealth finance.
Launched in September 2016, Jio quickly gained more than 388 million consumers by providing low data prices – but that strategy left the company in debt and in need of investment. Microsoft at 2019 announced a major partnership with the company to build data centers throughout the country.