Google is investing $ 4.5 billion for a 7.73 percent stake in Jio Platforms, an Indian Internet giant that offers broadband, mobile services and online trading platforms, the company announced today. The investment, which is pending regulatory review, is part of Google’s commitment to invest around $ 10 billion in India over the next five to seven years. It follows a similar move by Facebook to invest $ 5.7 billion for a 9.9 percent stake in the company earlier this year. Jio Platforms is the technology subsidiary of Reliance Industries.
As part of today’s announcement, Google says it is working with Jio on an “affordable entry-level smartphone.” Reliance Industries President Mukesh Ambani said this work will involve creating a custom version of Android designed for low-cost, entry-level smartphones, TechCrunch reports. It is unclear how this project relates to Google’s existing version of Android designed for low-power devices, Android Go.
Google says it hopes to use its investment in Jio to bring smartphones to more users in India. He points out that the majority of people in the country do not have access to the Internet, and even fewer have smartphones. A partnership with Jio, which reportedly has around 400 million subscribers, could help speed up Google’s efforts. Together we are excited to rethink, from scratch, how millions of users in India can become smartphone owners, “Google said in its announcement.
The investment in the Indian internet giant comes as India is trying to reduce its dependence on Chinese companies. Last month, the country banned 59 China-based apps and services, including TikTok and WeChat.