Intel announced, on Friday (July 2), it would pour in around $253.5 million in Jio Networks, joining a list of prominent investors including Facebook, Silver Lake, Mubadala, Abu Dhabi Investment Authority, and General Atlantic which in recent months have betted on India's premier telecom player.
The investment unit of the American microchip manufacturer disclosed it was purchasing a 0.39 percent interest in Jio Platforms, giving the Indian group a $65 billion valuation. Intel Capital is the 12th operator to purchase a stake in Jio Platforms, which has earned over $15.5 billion since April this year by unloading a 25 percent stake.
Owned by the Reliance Industries of Indian billionaire Mukesh Ambani, Jio Platforms has revealed the Intel investment on Friday via Twitter. Intel would inject $253.5 million into the $65 billion business, in return for 0.39 percent interest.
Jio Platforms operates the Jio Infocomm telecom infrastructure, which has gained more than 388 million 4G clients since it was unveiled in 2016. At present, Jio Platforms is the nation's leading telco, and also has an inventory of apps and other services in e-commerce and broadband.
Intel Capital invests worldwide in innovative businesses with a premium on disruptive technology aspects like Cloud computing, 5G, and artificial intelligence - lucrative markets where Jio is also investing for growth.
In a media release, Ambani, Chairman and Managing Director of Reliance Industries, said they are very happy to strengthen their business relations with technology leaders that "embody our vision of transforming India into a leading global digital society," TechRadar India Bureau, wrote.
The announcement came after Ambani revealed in June that a US$1.5 billion investment made by Saudi Arabia's public investment fund to acquire a 2.3 percent ownership would signal the end of Jio Platforms' existing phase of induction of financial partners.
Out of the tech group's portfolio businesses, 692 have successfully listed on the stock market or joined a merger. This makes the chip giant a major player in Jio's future initial public offering plans.
Ambani, the wealthiest person in India, disclosed on Friday that he was thrilled to partner with Intel to further advance the country's capabilities in advanced technologies that will "empower all sectors of our economy and improve the quality of life of 1.3 billion Indians," Manish Singh of TechCrunch said.
Home to 1.35 billion people, India is evolving fast and investors cannot afford to miss out on that opportunity, especially when it comes to major advances in global technology.
