Qualcomm has emerged as the latest prominent sponsor of four-year-old Reliance Jio Platforms, securing over $15.7 billion in the last quarter from several investors.
On Sunday night, Qualcomm Ventures announced it would invest $97 million in Reliance Jio Platforms to get a 0.15 percent equity ownership in the leading Indian telecom group. Qualcomm disclosed it would help Jio Platforms unveil state of the art 5G technology and services for Indian clients.
While competing with Vodafone Idea and Bharti Airtel in India, Reliance Jio Platforms has disrupted the Indian telecommunications market by offering cut-rate voice and data plans.
RJP has amassed almost 400 million subscribers to become the leading telco player in the world's second-biggest internet market in just under four years since it was formed.
Qualcomm disclosed in a media statement that its contribution will boost Mumbai-headquartered Jio's 5G and wireless infrastructure to a top of the line digital network for the 1.3 billion people of India and steer the nation onto the global stage in digital advancement.
According to Qualcomm chief executive officer Steve Mollenkopf, with the group's shared ambition of extending the benefits of digital integration to everyone and everything, "we anticipate that Jio Platforms will deliver a new set of services and experiences to India's consumers," PYMNTS reported.
Jio, a subsidiary of Reliance Industries, has recently raised $870 million from major U.S. companies including New York-based private equity company General Atlantic for a 1.3 percent stake, Facebook, Silver Lake, KKR, and Vista Equity Partners. The cumulative investment to date is the largest in Asia and is worth over $8 billion in investment for Jio.
Qualcomm said the investment will deepen its ties with Jio Platforms, to support the group on its journey to launch an advanced 5G network. Mukesh Ambani, chairman and managing director of Reliance Industries, said that he is very delighted to welcome Qualcomm Ventures as an investor in Jio Platforms.
Qualcomm, Ambani pointed out, has been "a valued partner for several years and we have a shared vision of connecting everything by building robust and secure wireless and digital network to everyone in India," Livemint reported.
Qualcomm's move comes at a time when India is preparing to auction 5G airwaves to telecoms service companies. With this new investment, Reliance has unloaded a 25 percent share in Jio Platforms to investors in a funding series that started late April, securing $15.7 billion.
Although Jio Platforms also forms a significant part of Reliance's movie apps and music business, Jio Infocomm – the mobile carrier – is its centerpiece.
