Qualcomm to invest $97 million in India’s Reliance Jio Platforms – ProWellTech
Qualcomm he became the latest high profile supporter of the four-year Reliance Jio platforms, which raised over $ 15.7 billion in the past 12 weeks from as many investors.
Sunday night, Qualcomm Ventures he said he will invest $ 97 million in Reliance Jio Platforms for the acquisition of a 0.15% shareholding in the main Indian telecommunications operator.
Qualcomm CEO Steve Mollenkopf said the company believes that Reliance Jio Platforms, which shocked the Indian telecommunications market by offering reduced voice and data plans, “will provide a new set of services and experiences to Indian consumers” in the future.
Reliance Jio Platforms, which competes with Bharti Airtel and Vodafone Idea in India, has amassed nearly 400 million subscribers and has become the leading airline in the world’s second largest Internet market in less than four years of its existence.
Its dominant position in the Indian telecommunications operator, while maintaining an ARPU (average revenue per user) corresponding to that of its competitors, has made Reliance Jio Platforms – a subsidiary of the most important Indian company Reliance Industries – an attractive company for a list of high profile investors. Facebook, Silver Lake, General Atlantic, Intel are some of the companies that supported Jio platforms at the height of a global pandemic.
“With unmatched speed and emerging use cases, 5G is expected to transform every sector in the coming years. Jio Platforms led the digital revolution in India through its extensive digital and technological capabilities. As an activator and investor with a long-standing presence in India, we look forward to playing a role in Jio’s vision to further revolutionize India’s digital economy, “said Mollenkopf in a statement.
Investors have told ProWellTech in recent months that the owner of Reliance Jio Platforms – India’s richest man, Mukesh Ambani – and his closeness to the ruling political party in India are also crucial to why the digital unit of Reliance Industries is so attractive to many.
They believe that buying a stake in Jio platforms would reduce the regulatory burden they currently face in India. Investors requested anonymity as they did not wish to speak publicly about political constraints.
A person familiar with the issue in one of the 12 companies that supported Reliance Jio Platforms said that Indian society is also tempting as companies around the world are trying to reduce their dependence and exposure on China.
India and the United States have, in recent months, taken steps to limit their dependence on Chinese companies. New Delhi last month banned 59 apps and services including TikTok developed by Chinese companies. Reliance Jio Platforms has yet to interesting to raise capital from any Chinese investor.
“Qualcomm has been a valued partner for several years and we have a shared vision to connect everything by building a solid and secure wireless and digital network and extending the benefits of digital connectivity to everyone in India,” Ambani said in a statement on Sunday.