Reliance Industries Ltd (RIL), Jio Platforms and Google on Wednesday announced the signing of binding agreements for an investment of Rs 33,737 crore by Google into Jio Platforms.
The investment by Google values Jio Platforms at an equity value of Rs 4.36 lakh crore. Google's investment will translate into a 7.73 per cent equity stake in Jio Platforms on a fully diluted basis. With this, the total investment from financial and strategic investors into Jio Platforms stands at Rs 152,056 crore.
The investment will build on Jio's and Google's existing efforts to expand the benefits of digitisation across the length and breadth of India, beyond the current 50-crore-plus internet users in the country.
"Google has empowered millions of Indians to access helpful information and, like Jio, is a force for change and innovation," said RIL Chairman and Managing Director Mukesh Amb.
"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," he said while addressing the company's 43rd annual general meeting (AGM).
"Together, we hope to play a strong facilitative role in the transformative journey of building a new Digital India," said Amb.
Jio Platforms and Google have also entered into a commercial agreement to jointly develop an entry-level affordable smartphone with optimisations to the Android operating system and the Play Store.
"Together we are excited to rethink, from the ground up, how millions of users in India can become owners of smartphones. This effort will unlock new opportunities, further power the vibrant ecosystem of applications and push innovation to drive growth for the new Indian economy," said Amb.
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 Rs 33,737 crore into Jio," he said.
"I am excited that our joint collaboration will focus on increasing access for hundreds of millions of Indians who do not currently own a smartphone while improving the mobile experience for all," added Pichai.
Jio Platforms, a majority-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 38.8 crore subscribers.
( With inputs from ANI )