US CHIPMAKER QUALCOMM TO INVEST $97 million (₹730 crores) IN JIO - HACKOGRAPH

US chipmaker Qualcomm announced sunday that it’s investing $97 million (₹730 crores) in Jio Platforms in exchange for a 0.15% stake in the company through its venture arm.

Qualcomm is the second chipmaker to pump money in Jio Platforms after Intel invested $253 million to pick up a 0.39% share. The US-based chipmaker is a key player in 5G development, especially when it comes to mobile phones. The investment can help both companies test 5G in India.

Mukesh Ambani, Reliance’s Chairman, said Qualcomm offers insights that will help us deliver our 5G vision:

Qualcomm has been a valued partner for several years and we have a shared vision of connecting everything by building a robust and secure wireless and digital network and extending the benefits of digital connectivity to everyone in India. As a world leader in wireless technologies, Qualcomm offers deep technology knowhow and insights that will help us deliver on our 5G vision and the digital transformation of India for both people and enterprises.

In the past few months, Jio has raised a total of $15.73 billion from 13 investors including some prestigious names such as Facebook, Silver Lake Partners, and General Atlantic. In exchange, the Indian company has given up 25.24% stake of the firm. Reliance Jio has already raised more capital in 2020 than all of India‘s startups combined in 2019.

On Sunday evening, Qualcomm Ventures said it will invest $97 million in Reliance Jio Platforms to acquire a 0.15% equity stake “on a fully diluted basis” in the top Indian telecom operator. Qualcomm said it will help Jio Platforms “roll out advanced 5G infrastructure and services for Indian customers.”

Reliance Jio Platforms, which competes with Bharti Airtel and Vodafone Idea in India, has disrupted the Indian telecommunications market by offering cut-rate voice and data plans. It has amassed nearly 400 million subscribers to become the top carrier in the world’s second largest internet market in less than four years of its existence.