Reliance Industries Limited (RIL), Jio Platforms Limited and Google have announced the signing of binding agreements for an investment of Rs 337.37 billion by Google into Jio Platforms. This investment by Google values Jio Platforms at an equity value of Rs 4.36 trillion. Google’s investment will translate into a 7.73 per cent equity stake in Jio Platforms on a fully diluted basis. With this, the total investment from financial and strategic investors into Jio Platforms stands at Rs 1.52 trillion.

The investment will build on Jio’s and Google’s existing efforts to expand the benefits of digitisation across the length and breadth of India, beyond the current 500+ million Internet users in the country.

Commenting on the development, Mukesh Ambani, chairman and managing director of Reliance Industries, said, “Google has empowered millions of Indians to access helpful information and, like Jio, is a force for change and innovation. We welcome Google onboard and are excited about our partnership for what it can deliver to Indians, from universalising Internet usage to deepening the new digital economy and providing a prime mover to India’s economic growth. Together, we hope to play a strong facilitative role in the transformative journey of building a new, Digital India.”

Meanwhile, Sundar Pichai, CEO of Google and Alphabet, said, “Reliance Industries, and Jio Platforms in particular, deserve a good deal of credit for India’s digital transformation. The pace and scale of digital transformation in India is hugely inspiring for us and reinforces our view that building products for India first helps us build better products for users everywhere. Google is proud to invest ₹ 33,737 crore into Jio. I am excited that our joint collaboration will focus on increasing access for hundreds of millions of Indians who don’t currently own a smartphone while improving the mobile experience for all.”

The transaction is subject to regulatory and other applicable customary approvals.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Meanwhile, the law firms Freshfields Bruckhaus Deringer US LLP and J. Sagar Associates advised Google on the transaction.