On Sunday, 12th July 2020, Mukesh Dhirubhai Ambani announced that the US-based Qualcomm Incorporated Investment’s arm, Qualcomm Ventures will be buying a 0.15 percent stakes in Jio Platforms for Rs 730 Crores.
Jio Platforms is the digital services arm of Reliance Industries which houses telecom company Reliance JioInfocomm. Reliance Industries said that the deal gives Jio Platforms an equity value of Rs 4.91 Lakh Crore and an enterprise value of Rs 5.16 Lakh Crore.
Qualcomm joins a long list of investors on Jio Platforms including internet major- Facebook.
Here are ten facts to know about the latest investment in Jio Platforms by Qualcomm:
1. Reliance has stated that Qualcomm will support Jio “on its journey to roll out advanced 5G infrastructure and services for Indian customers.”
2. Qualcomm comes into the picture when Government is preparing to auction 5G airwaves to telecom service providers.
3. Qualcomm is the thirteenth investment in Jio Platforms since 22nd April 2020. So far it has raised Rs 1, 18, 318.45 Crore within 12 weeks.
4. Other investors in Jio Platforms include US-based Facebook, General Atlantic, KKR and Intel Corporation, Abu Dhabi-based Mubadala, and Abu Dhabi Investment Authority, and Saudi Arabia’s Public Investment Fund.
5. Mukesh Ambani's statement on the Investment reads as follows: “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.”
6. The association with Qualcomm will bring technology know-how and insights that will help Jio Platforms deliver on its 5G vision and the digital transformation of India for both people and enterprise.
7. Reliance Industries said the transaction is subject to regulatory and other customary approvals.
8. Investments in Jio along with Reliance Industries rights issue are worth more than Rs 53,000 Crore has helped the conglomerate to be debt-free earlier than its target which was March 2021.
9. As Jio Platforms comprises Reliance Industries’ music and movie apps, JioInfocomm is its centerpiece. Ambani states Infocomm as a tech company instead of a traditional telecom firm.
10. Ambani had earlier stated, “Reliance Industries is now in its golden decade” while further adding, “I have fulfilled my promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March 2021.