After raising billions from high-profile companies, Reliance Jio is set to receive $97 million from Qualcomm, to “roll out” 5G infrastructure services.
Qualcomm Ventures, the corporate investment arm of Qualcomm (NASDAQ: QCOM)plans to invest $97 million in Reliance Jio Platforms, an Indian telecom company. The investment will give Qualcomm Ventures a 0.15% equity stake “on a fully diluted basis”, in Reliance Jio. This makes Qualcomm Ventures the 13th investor to support in Reliance Jio Platforms.
According to Qualcomm, the funds will help Reliance Jio to “roll out advanced 5G infrastructure and services for Indian customers.”
Over the years, Reliance Jio Platforms has grown to be one of the largest telecom companies in India. With almost 400 million subscribers, it has overshadowed competitors like Bharti Airtel and Vodafone Idea. Reliance Jio continues to attract millions of subscribers by offering cheap voice and data plans.
Despite relatively low charges, Jio Platforms has sustained an Average Revenue Per User (ARPU) equal to those of its competitors. The company’s continuous achievements continue to pull in more subscribers and high-profile investors.
Earlier in July, Reliance Industries added a video conferencing service called JioMeet, to its digital unit. Like Zoom, JioMeet offers an unlimited number of free calls and supports up to 100 participants in a call.
Qualcomm Joins Other Reliance Jio Investors
Lately, a lot of high-profile companies have been investing in the telecommunications company. Recently, Jio Platforms announced Intel Capital’s plan to invest Rs 1,895.50 crore, which translates to a 0.39% equity stake in Jio Platforms on a fully diluted basis.
The Chairman and MD of Reliance Industries Limited, Mukesh Ambani, spoke on the company’s recent deals. He noted:
“We are extremely delighted to deepen our ties with technology leaders that embody our vision of transforming India into a leading digital society in the world.”
In addition to the investment by Intel Corporation (NASDAQ: INTC), the chairman said:
“We are therefore excited to work together with Intel to advance India’s capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians.”
Earlier, Reliance Jio announced that it received $5.7 billion from Jhaadu Holdings LLC, equal to a 9.99% equity stake. Jhaadu Holdings, a Facebook subsidiary, became the 12th firm to invest in the company.
In a statement to the Bombay Stock Exchange (BSE) on the Jhaadu investment, Reliance Industries Limited said:
“We hereby inform that, after receipt of all requisite approvals, Jio Platforms Limited, a subsidiary of the Company (Reliance Industries), today received the subscription amount of Rs 43,574 (5.7 billion dollars) from Jhaadu Holdings, LLC. Jio Platforms Limited has allotted equity shares to Jhaadu Holdings, following which Jhaadu Holdings hold 9.99% of the fully diluted equity share capital of Jio Platforms Limited.”
Other companies that have invested in Jio Platforms are Saudi Arabia’s Public Investment Fund, TPG, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, and L Catterton. However, Facebook’s investment – through Jhaadu Holdings LLC – is the largest.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
