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Jio-Qualcomm Deal: Key Things to Know About the Technology Company

Image for Representation.

Image for Representation.

Qualcomm is a leading technology player, which has now invested Rs 730 crore in Jio Platforms and picked up a 0.15 percent stake in exchange.

  • News18.com
  • Last Updated: July 13, 2020, 11:58 AM IST
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Qualcomm, one of the world’s biggest and most impactful technology companies, has invested in Reliance Jio Platforms. The Qualcomm Ventures investment is worth Rs 730 crore, for a 0.15 percent stake in the company. With the investment, Qualcomm has joined Facebook, Silver Lake, Vista Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L. Catterton, PIF and Intel Capital, all of which combined has seen Jio Platforms raise a total of Rs 1,18,318.45 crore in investment in exchange for 25.24 percent stake in the company. Jio Platforms is valued at equity value of Rs 4.91 lakh crore, and enterprise value of 5.16 lakh crore. So, who is Qualcomm, and what does it bring to the table?

1. Qualcomm is a technology first company. It plays an unbeatable role thanks to its processor business that fuels a vast section of the world’s Android smartphones. Qualcomm’s chipset business gives it a commanding position in the global smartphone, network technology, automotive, IoT and other devices, which further positions it well to gauge the developing technology industry.

2. Qualcomm is also a leading network and communications player, and its work on 5G network equipment is leading the world towards next generation connectivity services. At the moment, Qualcomm’s 5G modems are among the leading 5G modems around, with leading devices such as most of the world’s flagship smartphones slated to use Qualcomm’s next generation technology.

3. The investment in Jio comes via Qualcomm Ventures, which is noted as one of the world’s leading venture capital investment groups. Under Qualcomm Ventures, the primary area of investment includes startups targeting the wireless ecosystem in sectors such as automotive, data centre and enterprise, digital health, IoT and mobiles.

4. Qualcomm has invested over $62 billion in cumulative R&D, and holds over 1.4 lakh patents and patent applications in key areas of technology. With over 35 years of history in technology innovation, Qualcomm can help Jio Platforms scale new heights in terms of its role in revolutionising India’s technology landscape.

Commenting upon the investment, Mukesh Ambani, chairman and managing of Reliance Industries, said, “Today, I am delighted to welcome Qualcomm Ventures as an investor in Jio Platforms. Qualcomm has been a valued partner for several years and we have a shared vision of connecting everything by building a robust and secure wireless and digital network and extending the benefits of digital connectivity to everyone in India. As a world leader in wireless technologies, Qualcomm offers deep technology knowhow and insights that will help us deliver on our 5G vision and the digital transformation of India for both people and enterprises.”

Steve Mollenkopf, CEO of Qualcomm Inc, said upon the investment, “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. As an enabler and investor with a longstanding presence in India, we look forward to playing a role in Jio's vision to further revolutionise India’s digital economy.”

Disclaimer:News18.com is part of Network18 Media & Investment Limited which is owned by Reliance Industries Limited that also owns Reliance Jio.

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