New Delhi: India's Reliance Industries said on Sunday Qualcomm Inc's investment arm will buy a 0.15% stake in its digital unit Jio Platforms for 7.3 billion rupees ($97.1 million).
The partnership will help Jio Platforms, the unit that houses Reliance's telecoms venture Jio Infocomm, to "roll out advanced 5G infrastructure and services for Indian customers", Reliance said in a statement.
Qualcomm's move comes at a time India is preparing to auction 5G airwaves to telecoms service providers.
With this new investment, Reliance has sold a 25.2% stake in Jio Platforms to investors in a funding spree that began late April, raising $15.69 billion.
Although Jio Platforms also comprises Reliance's music and movie apps, Jio Infocomm - the mobile carrier - is its centrepiece.
Reliance chairman and billionaire tycoon Mukesh Ambani has always pitched Jio Infocomm as a tech company instead of a traditional telecoms firm. That has helped Ambani win the backing of major tech firms such as Facebook Inc, Intel and now Qualcomm.
"Qualcomm offers deep technology know-how and insights that will help us deliver on our 5G vision and the digital transformation of India for both people and enterprises," Ambani said in the statement.
Steve Mollenkopf, CEO of Qualcomm Incorporated, said, "With unmatched speeds and emerging use cases, 5G is expected to transform every industry in the coming years".
"Jio Platforms has led the digital revolution in India through its extensive digital and technological capabilities. As an enabler and investor with a longstanding presence in India, we look forward to playing a role in Jio's vision to further revolutionise India's digital economy," he said.
Qualcomm is the world's leading wireless technology innovator and the driving force behind the development, launch and expansion of 5G.
Jio Platforms - which is also amassing a wide range of services from music streaming to online retail and payments - is expected to use its 388 million mobile phone subscribers as the cornerstone of an e-commerce and digital services business to rival Amazon and Walmart's Flipkart.
Jio has become Reliance's growth engine, combining with the company's fast-growing retail arm to help in offsetting the decline in oil and petrochemicals.
Jio's funding spree
The Jio Platforms deal spree began on April 22 when social networking giant Facebook agreed to acquire 9.99 per cent for Rs 43,573.62 crore.
Since then, six US private equity firms invested in Jio: Silver Lake Partners bought 2.08 per cent for Rs 10,202.55 crore, Vista Equity Partners paid Rs 11,367 crore for a 2.32 per cent stake, General Atlantic acquired a 1.34 per cent stake for Rs 6,598.38 crore, KKR paid Rs 11,367 crore for a 2.32 per cent stake, TPG bought a 0.93 per cent stake for Rs 4,546.80 crore and L Catterton picked up 0.39 per cent for Rs 1,894.50 crore.
Earlier this month, the investment arm of computer chip giant Intel Corp picked up 0.39 per cent stake for Rs 1,894.50 crore.
Jio Platforms has also received a funds from the Middle East which started with Mubadala Investment Co which picked up a 1.85 per cent stake for Rs 9,093.60 crore and was followed by Saudi Arabia's sovereign wealth fund, the Public Investment Fund, as well as the Abu Dhabi Investment Authority buying 2.32 per cent and 1.16 per cent stake for Rs 11,367 crore and Rs 5,683.50 crore, respectively.
Qualcomm's investment values Jio at Rs 4.91 lakh crore - the same amount as the previous several deals and a 12.5 per cent premium to the first investment by Facebook.
Of these deals, the one with Facebook, L Catterton, The Public Investment Fund (PIF), Silver Lake and General Atlantic have closed and the money has flown to Reliance.
Ambani had in August last year announced talks for sale of a 20 per cent in the oil-to-chemical (O2C) business to Saudi Aramco for USD 15 billion. However, the recent plunge in oil prices has left that deal under a cloud of uncertainty, although Reliance has said it is on track.
(With inputs from agencies)