Jio Platforms has seen investments from some of the world’s biggest companies in the last three months. Jio Platforms comprises India’s biggest telecom enterprise – Jio Infocomm, as well as apps related to news, movies, and music. Qualcomm, a California-based wireless technology company, is the latest addition to the list of investors contributing to Jio’s funding. Its technology and products are used worldwide in different wireless devices, including mobile phones. The company is investing Rs 730 crores for a 0.15% stake in return.
“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.” – said Mukesh Ambani, Chairman, and MD of Reliance Industries
Qualcomm’s Jio funding news is announced within weeks of partnership with Facebook and Intel. These three partnerships, along with the association with Google, are being tipped as the biggest strategic alliances that any company has been able to forge in recent years.
With this, Reliance has now sold more than 25% stakes in Jio Platforms. At the same time, Mukesh Ambani led Reliance Industries Ltd. has raised more than 1.52 lakh crores, which is more than the funds raised by a single company anywhere in the world. What’s more surprising is that this investment has come during a period of global lockdown.
Qualcomm has more than 140,000 patents and related applications registered in its name. It has spent over $60 billion in R&D in the last three decades or so. Qualcomm Ventures, the company’s investment wing, has financially supported disruptive ideas in the field of IoT, 5G, enterprise, networking, AI, and automotive, amongst others. So, its association with RIL doesn’t come as a huge surprise and has the promise of completely changing the telecommunication landscape of the country.
“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. As an enabler and investor with a longstanding presence in India, we look forward to playing a role in Jio’s vision to further revolutionize India’s digital economy.” – said Steve Mollenkopf, CEO of Qualcomm Inc.
Facebook started this investment spree in Jio Platforms by committing Rs 43,574 crores for a 9.99% stake. Other companies that followed suit include KKR, Intel, Vista Equity Partners, Saudi Arab PIF, Silver Lake, Mubadala, General Atlantic, Abu Dhabi Investment Authority (ADIA), and Google.
The Jio-Qualcomm deal is subject to customary regulatory approvals in India. If things go well, the investment has the power to support Indian telecom sector with advanced 5G infrastructure and services.