Investments flowing into Jio, the telecom wing of Reliance Industries led by India’s richest man Mukesh Ambani, doesn’t seem to stop anytime soon. Today, Reliance Jio announced yet another capital induction by Intel Capital, the investment wing of Intel technologies. The semiconductor firm takes a part of 0.39% for Rs.1,894.5 crores ($250 million), making it the 12th company to jump in.
Intel Capital Invests In Jio For 0.39% Stake
On 3rd July 2020, Reliance Jio and Intel Capital announced another investment deal that would take Jio platforms to Rs.5.17 lakh crores enterprise value. With this latest induction, the total investments Jio pooled in since April this year, totals to Rs.117,588.45 crores. The Intel Capital has a record of aiding tech companies that focus on cloud computing, 5G, and AI. Thus, Jio has something to take here other than just money.
Intel’s already having a significant presence in India. With thousands of employees in Hyderabad and Bangalore, it set-up offices for chip designing and other works. Though it’s no more into making mobile chips, it can help Jio platforms to gear up for 5G innovation, by providing critical infrastructure. While the transaction is subject to regulatory and customary approvals, a deal between these two can push digital induction in India significantly.
Wendell Brooks, President of Intel Capital said, “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.”
AZB & Partners, Davis Polk, and Wardwell acted as legal counsels for this deal, whereas Morgan Stanley advised the financial settlement. Reliance Industries, with the help of steady flow of investments, declared it’s now debt-free last month and is still raising funds to expand the operations of Jio platforms. The company has yesterday launched JioMeet, a Zoom like a video conferencing app for Indians.