On Wednesday, India’s Reliance Industries stated, Alphabet Inc’s Google has decided to purchase a 7.7% stake in its digital business for $4.5 billion. The development marks yet another U.S. tech giant backing Reliance Industries’ digital business following Facebook Inc doing so in April 2020.
In a webcast at the company’s annual shareholders meeting, Reliance Industries’ chairman, billionaire tycoon Mukesh Ambani stated, following Google’s investment, strategic and financial investors have committed a total of $20.22 billion (1.52 trillion rupees) in its Jio Platforms in the last few months.
Following this development, Jio Platforms is valued at $58.01 billion (4.36 trillion Indian rupees), said the company in a statement.
Jio Platforms houses movie apps, and music.
The deal comes just days after Sundar Pichai, Alphabet Inc’s CEO said, the company will be investing $10 billion in India over the next five to seven years through equity deals and tie-ups.
The Reliance-Google deal will help the former bolster its tech ambitions, including building smart homes, integrating technologies such as voice assistants, security systems and IoT enabled gadgets, appliances and even vehicles.
Earlier this month, the investment arms of Qualcomm Inc and Intel Corp have purchased stakes in Jio Platforms.
The developmen comes at a time when India is preparing to launch the auction of 5G radiowaves to telecoms service providers.