Jio Platforms has received its 13th investment in three months. Qualcomm Ventures, the venture capital investment group of Qualcomm Incorporated, has committed to invest Rs 730 crore for 0.15 per cent equity stake in the digital arm of Mukesh Ambani-led Reliance Industries. This is the largest continuous funds raise by any company in the world, that too when the world is in a lockdown due to the coronavirus pandemic.
This deal between Jio Platforms and Qualcomm will support the former's plans to roll out 5G infrastructure and services in India. Both companies have been working together for several years now.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Trilegal acted as legal counsel for Qualcomm Ventures.
Here are five important things about the Jio Platforms-Qualcomm deal:
1. This is an unprecedented 13th investment in Jio Platforms within 12 weeks, since April 22, 2020.
2. The investment is up to Rs 730 crore for a 0.15 per cent stake in Jio Platforms. Qualcomm is one of the pioneering companies in the technology space, well-known for its innovation and breadth of technology expertise.
3. With this investment, Jio Platforms has raised Rs 118,318.45 crore from leading technology investors including Facebook, Silver Lake Partners (two investments), Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, PIF, Intel Capital and Qualcomm Ventures. At Rs 118,318.45 crore, it is the largest continuous funds raise by a company anywhere in the world. Remarkably, this was done amidst a global lockdown.
4. Qualcomm's investment is at a similar valuation to the other recent investments in Jio - equity valuation of Rs 4.91 lakh crore and enterprise valuation of Rs 5.16 lakh crore.
5. As the venture capital investment group of Qualcomm Incorporated, Qualcomm Ventures has been making investments in technology companies around the world since 2000. In India, Qualcomm Ventures has invested in companies that address key domestic issues from dairy, transportation to defence, and build products for the domestic and the world market.