Google invests $4.5bn in JioSaavn parent Jio Platforms for 7.7% stake

 Google invests $4.5bn in JioSaavn parent Jio Platforms for 7.7% stake

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On Monday (July 13), Google CEO Sundar Pichai promised to invest $10 billion in India over the following 5-7 years through the brand new Google for India Digitization Fund.

Today (July 15), the know-how big has revealed the recipient of virtually half of that fund:  ₹33,737 crore (roughly $4.5 billion), is being invested by Google into Reliance Industries-owned Jio Platforms for a 7.73% fairness stake in the corporate.

The Jio Platforms subsidiary, fashioned in November when Reliance bundled its digital businesses together, is the parent of India’s largest telco, Reliance Jio Infocomm Ltd, which has over 388m subscribers.

It can also be the parent of JioSaavn, the Spotify rival created throughout a $1bn merger in 2018 between Reliance Industries / JioMusic and decade-old music streaming service Saavn, amongst different media companies.

In addition to the funding, Google and Jio Platforms have entered right into a business settlement to collectively develop an entry stage Android smartphone, a transfer which, in response to Sanjay Gupta, Google Country Head & VP, India and Sameer Samat VP, Product Management, “comes at an exciting but critical stage in India’s digitization”.

“Together we are excited to rethink, from the ground up, how millions of users in India can become owners of smartphones,” they wrote in a weblog put up revealed at this time (July 15).

This funding by Google, says Reliance, values Jio Platforms at  ₹4.36 lakh crore (roughly $58bn).

The funding additionally takes Jio Platforms’ complete funds raised in the previous 4 months to greater than $20.6bn from 13 buyers, who’ve collectively acquired roughly 33% of the corporate.

In April, Facebook acquired a 9.99% stake in Jio Platforms in a deal price ₹43,574 crore (round $5.7bn) and in May, Reliance announced that US-based personal fairness tech investor Silver Lake – which has beforehand invested in Twitter and Airbnb –  invested ₹5,655.75 crore (roughly $750m) into Jio Platforms.  As a outcome, Silver Lake has attained a stake price between 1% and a couple of% in Jio Platforms Ltd.

In June, it was revealed that Abu Dhabi’s Mubadala Investment acquired a 1.85% stake in Jio Platforms for ₹ 9,093.60 crore ($1.2bn).

Among the opposite corporations which have lately invested in Jio Platforms are Qualcomm Ventures, which secured a 0.15% stake for ₹ 730 crore (round $97 million) and Intel, which invested ₹ 1,894.50 crore (approximately $253.5 million) for a 0.39% fairness stake.


Jio Platforms’ parent Reliance Industries has said that it has turn into internet debt free following the spate of investments and according to varied information retailers, analysts count on to see a US IPO from JIO as quickly as 2021.

A report from analysts Greyhound Research in specific states that it expects to see Jio listed on both the Nasdaq or New York Stock Exchange at a valuation “in the range of between $150-200bn”.

JioSaavn – majority-owned by Reliance Industries / Jio – boasts over 100 Monthly Active Users (MAUs) and its debt free parent firm is hanging key partnerships with a number of the world’s largest tech corporations.

“Together, we hope to play a strong facilitative role in the transformative journey of building a new, Digital India.”

Mukesh Ambani, Reliance Industries

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, mentioned: “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.”

“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.”

Sundar Pichai, Google / Alphabet

Sundar Pichai, CEO of Google and Alphabet, added: “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.”Music Business Worldwide

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