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RIL AGM 2020: Google will invest Rs 33,737 crore for 7.7% in Jio Platforms

With this investment Google becomes the second largest investor in Jio Platforms after social media giant Facebook that invested $5.9 billion (Rs 43,574 crore) for a 9.99% stake.

July 15, 2020 / 04:59 PM IST

Google will invest Rs 33,737 crore for a 7.7 percent stake in Jio Platforms Limited, becoming the latest A-list investor in the digital unit of Reliance Industries (RIL).

This investment by Google values Jio Platforms at an equity value of ₹ 4.36 lakh crore. Google’s investment will translate into a 7.73% equity stake in Jio Platforms on a fully diluted basis.

Track all the updates on RIL AGM by following our LIVE blog here

The deal with Jio, which runs the telecom enterprise Jio Infocomm, India’s biggest, as well as movie, news and music apps, is not just a financial but also a strategic investment by the internet giant. Google has joined Facebook Inc, Intel Corp and Qualcomm as strategic partners in Jio.

Speaking about the investment Ambani 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.”


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 Rs33,737 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."

Fantastic Fourteen

On the contours of the partnership with Google, Mukesh Ambani, at RIL's 43rd AGM said, "The Jio-Google partnership is determined to make India 2G-mukt. We believe we can design entry-level 4G or even 5G smartphone for a fraction of its current cost. To power such a value engineered smartphone, we also need 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 Android-based smartphone operating system right here in India."

The investment by Google—the 14th such deal in less than 13 weeks—takes the total stake that Reliance sold in Jio Platforms to a skosh over 33 percent. Mumbai-based RIL has now raised a combined Rs 1,52,056 crore from some of the world’s leading tech investors in the largest fundraising exercise by a company anywhere in the world and during a global lockdown at that.

Jio has also attracted the six most admired technology and financial investors as well three sovereign funds. The four strategic partners besides bringing in cash are also going to play a strategic role in shaping the future of Jio.

Also Read: Facebook buys 9.9% stake in Reliance Jio for Rs 43,574 crore in largest tech FDI

Facebook led the investments in Jio by buying a 9.99 percent stake for Rs 43,574 crore on April 22. The oil-to-telecom conglomerate 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, Intel and Qualcomm.

Cumulatively, RIL has raised Rs 2,12,809 crore through Rights Issue, combined investments in Jio Platforms, and investment by BP. It is in excess of our Net Debt of Rs 1,61,035 crore at the end of FY19-20.

The transaction is subject to regulatory and other customary approvals.

Follow all of our coverage on RIL's 43rd annual general meeting here.

Also read
- RIL 43rd AGM: Reliance Jio and Google partner to build an affordable Android-based 5G smartphone for India
- RIL 43rd AGM: Google will invest Rs 33,737 crore for 7.7% in Jio Platforms
- RIL AGM: Nearly half of Google's India Digitisation Fund to go into Jio
- RIL 43rd AGM: Jio develops made-In-India 5G solution
- RIL AGM key highlights: Mukesh Ambani announces Google deal; Jio readies 5G solution
- RIL AGM: Capital raise complete, now only look to add strategic partners, says Chairman Mukesh Ambani
- RIL AGM 2020: In its latest offerings, Reliance announces JioTV+ and Jio Glass
- RIL AGM: Reliance launches Jio Glass for best-in-class mixed reality experience
- RIL 43rd AGM: Saudi Aramco deal has not progressed as per earlier timeline: Mukesh Ambani
- RIL AGM: JioMart successfully piloted, will expand beyond groceries
- RIL AGM: Will induct global partners into Reliance Retail, says Mukesh Ambani
- RIL AGM: Reliance Retail only Indian company in Top 100 global retailers, says Mukesh Ambani
- RIL AGM: No better partner for Indian startups than Jio, says Chairman Mukesh Ambani
- RIL AGM: Isha Ambani says JioMeet, Embibe helping students get access to quality education online

- RIL AGM: Isha Ambani says JioMeet, JioHealthHub to provide end-to-end digital health services

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

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