Alphabet’s (GOOG -0.67%) (GOOGL -0.79%) Google is eyeing the Indian mobile market and could make an investment in Vodafone Idea, a partnership between the UK telecom and Aditya Birla Group of India.
The Financial Times, citing people familiar with the matter reported talks are in their infancy but could result in Google acquiring a 5% stake in the mobile business, which has been struggling in recent months. In the fall the Supreme Court in India required the company to pay billions of dollars in back fees. Vodafone has balked at infusing any more money into Vodafone Idea to save the business.
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Google had previously held discussions with Jio Platforms, the mobile company owned by Reliance Industries, reported the Financial Times. Jio recently raised around $10 billion in venture funding from a group of investors that included Facebook (META -1.16%). The tech stock poured $5.7 billion in Jio, giving it a just under 10% stake. The Financial Times reported talks between Google and Jio are still continuing despite that capital infusion from Facebook.
By acquiring a stake in Vodafone Idea, Google can get a bigger foothold in a market that is seeing red-hot mobile growth and is among the fastest-growing mobile markets in the world. Facebook is going after the market too which could morph India into the next battleground for the Internet search and social media giants.
While Google has had mixed results on the mobile operating front in India its digital payments business is growing despite several competitors vying for consumer’s money. India is also key for Google’s Next Billion Users efforts in which it is going after users in developing markets as they become connected to the Internet. During the COVID-19 pandemic, which has hurt India’s economy, mobile usage, digital payments, and e-commerce are seeing an upswing.
