The news followed Monday’s announcement that Google is to invest US$10 billion in various projects and entities to “accelerate India’s digital economy”.
Critics were quick to note that almost half that sum will now be channelled into businesses operated by the country’s richest man. However, in their announcement Google and Jio placed a firm focus on their new commercial agreement to jointly develop an entry level affordable smartphone for the local market.
This will feature optimisations to the Android operating system and the Play Store.
In a joint statement, the two said: “Together we are excited to rethink, from the ground up, how millions of users in India can become owners of smartphones. This effort will unlock new opportunities, further power the vibrant ecosystem of applications and push innovation to drive growth for the new Indian economy.”
Mukesh Ambani, chairman and MD of Reliance Industries, said: “Google has empowered millions of Indians to access helpful information and, like Jio, is a force for change and innovation. We welcome Google onboard and are excited about our partnership for what it can deliver to Indians, from universalising internet usage to deepening the new digital economy and providing a prime mover to India’s economic growth. Together, we hope to play a strong facilitative role in the transformative journey of building a new, Digital India.”
The investment is the 12th since Facebook’s deal in April – itself tipped to push Jio into e-commerce – and is the second largest investment deal for Jio Platforms to date. It follows earlier deals with Vista, Silver Lake, KKR, General Atlantic, Saudi Arabia’s Public Investment Fund and the UAE’s Mubadala and ADIA.
With the current "phase of induction of financial partners” complete as of last month, the company is planning an IPO by 2024.
Sundar Pichai, CEO of Google and Alphabet, said: “Reliance Industries, and Jio Platforms in particular, deserve a good deal of credit for India’s digital transformation. The pace and scale of digital transformation in India is hugely inspiring for us and reinforces our view that building products for India first helps us build better products for users everywhere. Google is proud to invest ₹ 33,737 crore into Jio. I am excited that our joint collaboration will focus on increasing access for hundreds of millions of Indians who don’t currently own a smartphone while improving the mobile experience for all.”
