Qualcomm to invest Rs 730 crore in Jio Platforms for 0.15% stake; 13th such investment in 12 weeks- Technology News, Firstpost

FP StaffJul 12, 2020 20:44:15 IST

Qualcomm Inc, one of the world’s top wireless technology companies, will invest Rs 730 crore in Jio Platforms in exchange for a 0.15 percent stake. The company is the third strategic investor in Jio after Facebook Inc and American semiconductor giant Intel.

Jio Platforms, a unit of Reliance Industries Limited, runs the telecom enterprise Jio Infocomm, India’s biggest, as well as movie, news and music apps.

The deal with Qualcomm—the 13th such investment in 12 weeks—takes the total stake that Reliance sold in Jio Platforms to 25.24 percent. Mumbai-based RIL has now raised a combined Rs 118,318.45 crore from some of the world’s leading tech investors in the largest fundraising exercise by a company anywhere in the world and during a global lockdown at that.

Facebook led the investments in Jio by buying a 9.99 percent stake for Rs 43,574 crore on April 22. The oil-to-telecom conglomerate has since sold stakes in Jio to global investors such as General Atlantic, KKR, Saudi sovereign wealth fund, Abu Dhabi state fund, Saudi Arabia’s PIF and Intel.

Qualcomm has invested in Jio through its investment arm Qualcomm Ventures. The investment comes at an equity valuation of Rs 4.91 lakh crore and enterprise valuation of Rs 5.16 lakh crore.

Qualcomm, which holds several patents and leads patent filings in India, describes itself as the world’s leading wireless technology innovator and the driving force behind the development, launch, and expansion of 5G.

The company is focussed on the development, launch and expansion of technologies like fifth-generation (5G) and offers technologies and products that are used in mobile devices and other wireless products, including network equipment, broadband gateway equipment, consumer electronic devices and other connected devices. Qualcomm’s technologies and products are also used in segments and applications beyond mobile such as Internet of Things (IoT), automotive, computing, and networking, among other industries.

The transaction is subject to regulatory and other customary approvals.

(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)