On July 12, 2020, Reliance Industries Limited (RIL) announced Qualcomm Ventures decision to invest INR 730 Crore for 0.15% equity stake in Jio Platforms, a wholly-owned subsidiary of RIL. Qualcomm Ventures has invested at an Equity Value of Rs 4.91 Lakh Crore and an Enterprise Value of INR 5.16 Lakh Crore.
With this round, Jio Platforms has raised a total of INR 118,318.45 Crore (USD 15.88 Bn) from 12 global technology investors.
Before we discuss why this investment by Qualcomm Ventures is strategic, here’s a quick summary of the investments so far in Jio Platforms:
We at Greyhound Research believe, like all other investors, Qualcomm Ventures also bring strategic value to Jio Platforms. Here are the five areas where the former will contribute the most to the latter:
1/ Networking – Jio and Qualcomm have a long standing relationship across 4G VoLTE and more recently 5G use-cases in India.
2/ Devices – Qualcomm’s partnership with KaiOS (16% owned by RRVL) can further Jio’s smart feature phones & accessories market.
3/ Computing – Qualcomm’s Snapdragon platform can help Jio launch cheap computing devices – Jio also has access to Intel & AMD.
4/ IoT – Qualcomm can help Jio with wearables, set top boxes, home automation, IPTV, Wi-Fi, smart cameras & smart car projects.
5/ Portfolio – Qualcomm Ventures experience with Zoom, fitbit, CloudFlare, Mobike, Ring, MI and others will add significant knowhow to Jio.
In a nutshell, Qualcomm Ventures brings to Jio prowess in latest technologies including Networking, Computing, Devices, AI among others and expertise in scaling and building global startups given its exposure in companies like Zoom, and MI.
Last but not least, we at Greyhound Research believe RIL can potentially divest another 4-5% in Jio Platforms to raise additional money in the range of INR 20,000 – INR 25,000 crore.
P.S.: For more information on the recent investments, value that each investor brings to Jio Platforms, engagement with Microsoft, impact on Bharti Airtel, and the challenges the company can expect, read this research report by Greyhound Research.
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