Jio Platforms Receives Rs 33, 737 Crore Funds From Google International By CIOReviewIndia Team

Jio Platforms Receives Rs 33, 737 Crore Funds From Google International

CIOReviewIndia Team | Tuesday, 24 November 2020, 04:33 IST

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Jio Platforms Ltd, which is a subsidiary of Mukesh Ambani owned Reliance Industries Ltd (RIL), received the subscription amount of Rs. 33,737 crore from Google International LLC.

Google International, which is a wholly-owned subsidiary of Google LLC, now holds 7.37 per cent of fully diluted share capital of Jio Platforms, which RIL said in a late evening exchange filing.

Earlier this year, in the month of July, Google entered into an agreement for investing $4.5 billion, almost equivalent to Rs. 33,737 crore, in Jio Platforms in lieu of a 7.37 per cent stake.

This was Google For India Digitization Fund’s first investment.         

Google and Jio Platforms have also come into a commercial agreement, which states of jointly developing an entry level affordable smartphone, which will offer optimization facility to the Android operating system and the Play Store.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, "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.”

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 ₹ 33,737 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.”

The funds have helped RIL overcome debt, as the oil-to-retail-telecom conglomerate said in the month of June that it gained the status of a debt-free company when the first 11 consecutive investments in Jio Platform was successful, with Rs. 53,124 crore rights issue.

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