Last month, social media giant Facebook bought a stake in Jio Platforms in its biggest push into the Indian market, which is considered the most dynamic mobile market in the world. At the time, he wondered: How will Facebook's rival Google respond? The answer, it seems, is: by buying a stake in Jio's rival. According to a report in the Financial Times, Google is considering an investment in Vodafone's Indian operations, and ongoing talks are still at a preliminary stage. Google plans to buy an approximate 5% stake in Vodafone Idea, a partnership between the British telecommunications company and the Aditya Birla Group. However, the company is under considerable financial pressure. It's worth remembering that in recent weeks, Reliance Industries' Jio has secured more than €10 billion in investment from Facebook and private equity groups, including KKR, General Atlantic, Vista Equity Partners and Silver Lake.
Google explores Vodafone Idea's involvement in pushInvestment in India in ailing company could oppose investigative group to Facebook and Reliancehttps://t.co/2REN9v2npAMMay 28, 2020
Extremely attractive Indian market
Google parent Alphabet also discussed acquiring a stake in Jio, and while discussions are still ongoing, it has lagged behind its rival in reaching a deal, according to the report. from the Financial Times. Google's interest in the Vodafone Idea shows two things. First, his own rivalry with Facebook. Second, the attractiveness of the Indian market. Telecom operators each have hundreds of millions of subscribers in India. And Jio's remarkable growth has been possible because the subscriber base is close to 390 million. Google already has a reasonable success story in India with Google Pay, which has grown rapidly since its launch in 2017. Vodafone and Idea, for their part, would see a potential God-sent investment from Google. The group is fighting a Rs 53,000 crore adjusted levy on the government from gross receipts. The group has already said it could "permanently close the doors" because it cannot pay the government. In the meantime, as if all the action wasn't enough, Jio would have separate talks to raise an additional 2.5% from Microsoft for €2 billion.