Reliance Jio: Google will invest Rs 33,737 cr for a 7.7% stake in Jio Platforms

In the 43rd AGM of the Reliance Industries, Mukesh Ambani announced a lot of updates. The one that caught our eyes was the very first. Google is investing ₹ 33,737 crores in Jio for 7.7% stake. With this, the total investment from financial and strategic investors into Jio Platforms stands at ₹ 1,52,056 crore.

Through this investment, Jio and Google will jointly develop entry-level, affordable smartphones. The smartphones will have optimizations to the Android operating system and the Play Store. The investment will build on Jio’s and Google’s existing efforts to expand the benefits of digitization across the length and breadth of India. This is beyond the current 500+ million Internet users in the country. This effort will unlock new opportunities, further power the vibrant ecosystem of applications and push innovation to drive growth for the new Indian economy.

Comments from Reliance and Google

Mukesh Ambani, Chairman and MD of Reliance Industries, 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.

On the other hand, 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 are 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 ₹ 33,737 crores into Jio. I am excited that our 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.