Qualcomm invests $97m in Jio Platforms

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US-founded chip maker Qualcomm acquired a 0.15 % share in Jio Platforms, becoming the most recent investor in the technology program owned by Reliance Industries.

Qualcomm is investing 7.3 billion rupees (Dh356.5m/$97m) because of its stake in Jio Platforms, Reliance Industries reported in a statement in Sunday evening. The offer values Jio Platform’s equity at about 4.91 trillion rupees ($65.3bn).

The chip maker, which is investing through its ventures arm, is the latest in a string of recent backers of Jio Systems, following stake sales to the Abu Dhabi Purchase Authority, Mubadala Investment Firm, Saudi Arabia’s Public Expenditure Fund, Facebook, Intel Capital, KKR, TPG, General Atlantic, Silver Lake Capital and Vista Equity Companions.

“Qualcomm is a valued partner for several years and we've a shared vision of connecting everything by building a robust and secure wi-fi and digital network and extending the benefits associated with digital connectivity to everyone found in India,” said Reliance Sectors’ chairman Mukesh Ambani, who's Asia’s richest man.

“As a world leader in wireless systems, Qualcomm offers deep technology knowhow and insights that can help us deliver on our 5G eyesight and the digital transformation of India for both persons and enterprises.”

Reliance Sectors is India’s major private sector enterprise, with a good consolidated turnover of $87.1bn and a good net earnings of $5.3bn for the entire year ended March 31, 2020.

It has been building Jio Systems, which houses motion picture streaming, music software and telecoms venture Jio Infocomm, for four years.

The platform already has 388 million clients and Reliance Industries is seeking to use technology to produce a ‘digital India’ by offering affordable online offerings to all or any of the country’s 1.3 billion people.

Reliance Industries features spent about $50bn construction the platform, resulting in the business holding net debt around $20bn as of March 2019, however the recent stake revenue to investors features eliminated almost all of this.

Reliance is also working with banking institutions on early preparations for all of the Jio Platforms beyond India, according to Bloomberg.

“Jio Systems has led the digital revolution found in India through its intensive digital and technological capabilities. As an enabler and trader with a longstanding presence in India, we anticipate playing a role in Jio's perspective to help expand revolutionise India’s digital market,” Qualcomm’s leader Steve Mollenkopf said in the statement. 
Source: https://www.thenational.ae

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