- Chip giant Intel is investing over $250 million in India-based telecommunications company Jio Platforms for a 0.39% stake. These are the details.
Chip giant Intel is investing over $250 million in India-based telecommunications company Jio Platforms for a 0.39% stake. This investment is based on a $65 billion valuation. Jio Platforms is owned by Reliance Industries, which is a multinational conglomerate run by billionaire Mukesh Ambani.
This investment is being made through Intel’s venture capital arm Intel Capital. Jio Platforms runs the Jio Infocomm telecom network, which gained over 388 million 4G subscribers since it launched in 2016.
Jio Platforms has also raised funding from Mubadala Investment, Silver Lake, KKR, TPG, L Catterton, the Abu Dhabi Investment Authority, Saudi Arabia’s Public Investment Fund, General Atlantic, and Facebook over the last few months. Ambani made it a goal to sell around 20% of Jio Platforms in order to raise cash to pay off the debt of Reliance Industries. It is estimated that Reliance has debt of about $20 billion.
Jio Platforms is also known for operating a number of digital apps and services such as music streaming service JioSaavn, live TV service JioTV, and payments app JioMoney. Jio is reportedly planning to take JioSaavn public sometime in the near future. And Jio Platforms also launched a video conference service that competes against Zoom called JioMeet.
“We are extremely delighted to deepen our ties with technology leaders that embody our vision of transforming India into a leading Digital Society in the world. Intel is a true industry leader, working towards creating world-changing technology and innovations. Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally. We are therefore excited to work together with Intel to advance India’s capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians.”
-Mukesh Ambani, Chairman and Managing Director of Reliance Industries
“Jio Platforms’ focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel’s purpose of delivering breakthrough technology that enriches lives. We believe digital access and data can transform business and society for the better. Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence.”
-Intel Capital President Wendell Brooks
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