Reliance RIL AGM 2020: Google invests ₹33,737 crore for 7.7% stake in Jio Platforms
Reliance RIL AGM 2020: Together with Google’s investment, Jio Platform has raised a total of ₹1,52,056 crores by selling its stake in the company.
Reliance Industries Limited chairman and managing director Mukesh Ambani at the company's 43rd annual general meeting (AGM) announced that Google has invested a sum of ₹33,737 crore in Jio Platforms. This investment converts into a 7.7% stake in Jio Platforms. This is the second largest investment in Jio Platforms after Facebook, which invested ₹43,574 crore in the company for a 9.99% stake in the company.
The investment comes shortly after Intel and Qualcomm invested ₹1,894.50 crore and ₹730 crore for 0.39% and 0.15% stake in Jio Platforms respectively.
Together with Google's investment, Jio Platform has raised a total of ₹1,52,056 crores by stake sale. Cumulatively, Reliance Industries Limited has raised a total of ₹2,12,809 crore so far using sale of stake in Jio Platforms, rights issue, which raised ₹52,124 crore and was also the world's largest rights issue by a non-financial institution.
"We are delighted to welcome Google as a strategic investor in Jio Platforms. We have signed a binding partnership and an investment agreement under which Google will invest ₹33,737 crores for a 7.7 per cent stake in Jio Platforms," Ambani said at the company's annual general meeting.
In addition to an investment of ₹33,737 crores, the two companies, that is Google and Jio Platforms, will also be collaborating to build a value-engineered Android-based operating system that will be powering 4G smartphones in India.
Jio is at the center of the Indian tycoon's ambition to transform his energy conglomerate into a homegrown technology behemoth akin to China's Alibaba Group Holding Ltd. With Google's contribution added in, the venture has now attracted somewhere close to $20 billion in recent months. The Reliance share price was up 3% in the buildup to the presentation and has been setting new highs over the past few weeks.
Google's backing further burnishes Jio's credentials in its push to upend online retail, content streaming, digital payments, education and health care in a market of more than a billion people.
Global tech leaders are looking for multiple ways to grab a slice of the Indian market, where millions of first-time internet users are added every month. Jio Platforms offers the largest base of such users who are increasingly buying consumer goods online and downloading music and video, using cheap smartphones and Jio's own cut-price data services.
The flood of investments in Jio is closely tied to the number of internet users it has and the services it can market to them.
(With inputs from Bloomberg)