Google injects $4.5b into Jio Platforms

Google has joined Facebook and Intel in backing Jio Platforms, the digital ventures arm of Indian conglomerate Reliance Industries Limited (RIL).

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The global internet giant is investing US$4.5 billion for a 7.7% stake in Jio, RIL Chairman Mukesh Ambani said during the company’s 43rd annual general meeting. The latest capital injection puts Jio’s total funding within the last few months to over US$20.6 billion, selling a roughly 33% stake in the company.

See: Reliance Jio continues to headline Asian fundraising in June

With the deal, Google and RIL will work on a customized version of the California-based company’s mobile operating system.

“Getting technology into the hands of more people is a big part of Google’s mission to organize the world’s information and make it universally accessible and useful,” said Google CEO Sundar Pichai in a video during the general meeting.

This is also a key part of Google’s decision to invest US$10 billion in India over the next five to seven years through its recently announced Google for India Digitization Fund. Pichai added that Google’s investment into Jio is the fund’s first, and the biggest bet it will make from this point on.

“Our target for capital raised is now complete and we now look forward to only adding strategic partners who share our vision in each of our current and future businesses,” Ambani shared. The chairman was referring to the company’s rights issue, investments into Jio Platforms, and an investment by oil major BP into RIL’s fuel retailing business.

Jio currently runs the largest telco in India. With nearly 400 million subscribers, it aims to digitize India’s 1.3 billion people.

See: Mukesh Ambani’s Kingdom

Over the past few months, Jio has attracted a wave of hefty investments from foreign investors, with Facebook injecting US$5.7 billion into the company back in April. Other investors include KKR, General Atlantic, and Qualcomm, among others.