Google will invest up to $700 million to acquire 1.28% ownership in Airtel and up to $300 million in potential multi-year commercial deals as part of its Google for India Digitalization Fund.
Google has announced an investment of up to $1 billion in Indian Bharti Airtel as part of its Google for India Digitalization Fund. The company will include equity investments, as well as a corpus for potential commercial deals. The companies will work together to build a consumer ecosystem. Airtel is one of the largest telecom service providers, serving more than a million small and medium-sized businesses with its business connectivity offerings.
Google invests $700 million in Bharti Airtel
According to an official statement, the $1 billion investment will include $700 million for a 1.28 percent stake in Bharti Airtel, and up to $300 million for potential multi-year commercial deals. The investment is to be identified and agreed upon over the course of five years on mutually acceptable terms.
Airtel in his blog post mentioned that both companies will work together to build on Airtel’s extensive offering that will provide consumers with a range of Android devices through innovative affordability programs. The telecom service provider will also be working on affordable smartphones, in partnership with several device manufacturers.
Sunil Bharti Mittal, Chairman of Bharti Airtel, said: “Airtel and Google share the vision to grow India’s sirbptial dividend through innovative products. With our future-proof network, sirbptial platforms, last mile distribution and payment ecosystem, we look forward to working closely with Google to increase the depth and breadth of India’s sirbptial ecosystem.”
Sundar Pichai, CEO of Google and Alphabet, said: “Our commercial and equity investment in Airtel is a continuation of the efforts of our Google for India Digitization Fund to increase smartphone access, improve connectivity to support new business models and empower businesses. help with their sirbptial transformation journey.”
Earlier in 2020, Google announced investments of $4.5 billion for a 7.73% stake in the Mukesh Ambani-led Reliance Jio network.