Google to Invest Rs 33,737 Crore in Jio Platforms for 7.7% Stake, Mukesh Ambani Announces at RIL AGM
Reliance Industries Chairman Mukesh Ambani addresses the virtual AGM on Wednesday.
Reliance Industries chairman and managing director Mukesh Ambani announced on Wednesday at the company’s 43rd annual general meeting that Google will be the 13th investor in the Reliance Industries subsidiary.
- Last Updated: July 15, 2020, 15:42 IST
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In an unprecedented fourteenth consecutive deal, US tech giant Google will invest Rs 33,737 crore in Jio Platforms for a 7.7 percent stake, joining other big-name investors in the digital unit of Reliance Industries Limited (RIL).
Reliance Industries chairman and managing director Mukesh Ambani announced on Wednesday at the company’s 43rd annual general meeting that Google will be the 13th investor in the Reliance Industries subsidiary. Ambani said the company’s target of capital raising was now complete.
“I look to work with them in a collaborative way. What they bring is more than money. They bring a strong vote of confidence in our bold mission and our ability to execute."
Ambani said the Jio-Google partnership is determined to make India 2G-mukt (2G-free) and the two companies will jointly develop an entry-level 4G, or even 5G smartphone, for a fraction of its current cost.
“To power such a value engineered smartphone, we needed an equally value engineered smartphone Operating System, and such an Operating System must be designed from grounds-up. Google and Jio are partnering to build just such a smartphone Operating System right here in India,” the RIL chairman said.
Google CEO Sundar Pichai said: "Everyone should have access to the internet. Proud to partner with Reliance Jio
to increase access for the hundreds of millions in India who don’t own a smartphone with our 1st investment of $4.5 Billion from the Google For India Digitization Fund.
RIL is the first Indian company to have crossed market capitalization of USD 150 billion, riding on the success of its mobile digital arm Jio Platforms that had already attracted equity investments from the likes of Facebook, Qualcomm, Intel, KKR, TPG, Abu Dhabi Investments Authority and others.
This is the first time India’s largest company held a virtual AGM, like many other companies, owing to covid-19 restrictions.
RIL reported a consolidated turnover of Rs 6.59 trillion in 2019-20, up 5.4 per cent from a year earlier. The net profit at the group rose 11.3 per cent to Rs 443.24 billion.
Facebook bought a 9.99 percent stake for Rs 43,574 crore on April 22. Reliance has since sold stakes in Jio to global investors such as General Atlantic, KKR, Saudi sovereign wealth fund, Abu Dhabi state fund, Saudi Arabia’s PIF and Intel.
This is the largest continuous funds raise by a company anywhere in the world. For some comparison, India's start-up ecosystem raised Rs 1.10 lakh crore last year, in what was its best year.
Jio, which runs movie, news and music apps as well as the telecom enterprise Jio Infocomm, has attracted the largest continuous fundraising by a company anywhere in the world.