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Original title: Google and Facebook spread 100 billion yuan in India
Wen / Fu Rao
Source: ID: passagegroup
On July 13, Google CEO Sandel Pichai and Indian Prime Minister modi just opened a video. Modi also sent two tweets, saying it was a “fruitful interaction.”.
A few hours later, Sandel picchay announced at the Google for India conference that a $10 billion digital fund would be set up in India. “We are proud to support Prime Minister modi’s vision of digital India,” Mr. Pichai said.
Picha announced Google for India Fund on twitter / twitter
Google is not the first U.S. giant to “coin” India.
The rapid financing of Ambani, India’s richest man, is another example. Since the end of April, 13 investments totalling 15.69 billion US dollars have been introduced from the United States and the Middle East, including US technology companies Facebook, Intel and Qualcomm. Facebook alone has invested $5.7 billion for Yao. Zuckerberg promised that the money would be used to help tens of millions of small and medium-sized businesses in India to become digital. According to press reports, Google and Microsoft are also considering investing in Ji platforms.
When the epidemic spread, the U.S. Internet giant jumped into India, which was the time when Sino Indian relations were in a cold spell.
In the first half of 2020, Indian Prime Minister modi announced a series of radical moves, such as “self-reliance”, the government’s revised FDI (foreign investment) Bill, and the ban on Chinese app, which continuously threw cold water on Chinese investors.
One cold and one hot, China’s East, west of the United States, India’s Internet venture capital ecology to another intersection.
India welcomes foreign investment, Google issues 10 billion yuan
Speaking as a guest at India global week 2020 on July 9, modi said, “we are laying the red carpet for all global companies to set up their own businesses in India.”
“India is a talent powerhouse, eager to contribute and ‘ready’ to learn,” modi added
The background of modi’s speech was that 59 Chinese applications were banned, which led to the international community’s questioning of India’s business environment.
Less than a week later, Indian born Google CEO Peter Chay was the first to respond to modi.
On the morning of July 13, modi and Pichai had an online meeting. They discussed the use of the power of technology to change the lives of Indian farmers, young people and entrepreneurs. They talked about the impact of the new epidemic on work culture and the challenges to the sports industry. Modi specifically mentioned that both sides talked about the importance of data security and network security.
Pichai also said he was very optimistic about prime minister modi’s vision of “digital India”. And he’s excited that Google can get involved.
Modi and Pichai shared their online conversation on twitter / twitter
On the afternoon of July 13, Pichai announced in the first Google for India online conference that Google would set up a $10 billion digital fund to invest in India’s digital service enterprises in the next five to seven years. PI Chayi introduced that the investment of digital fund will be concentrated in four areas:
First of all, let every Indian have access to information in his own language and can afford the means to obtain it;
Second, create new products and services related to the depth of India’s unique needs;
Third, empower enterprises in the process of starting or continuing digital transformation;
Fourth, using technology and artificial intelligence to serve the public welfare, including health, education, agriculture and other fields.
According to Mr. picchay’s speech, the money will be used for equity investments, partnerships, and a portfolio of operations, infrastructure and ecosystem investments. The money will go not only to large Indian companies, but also to buy shares in vertical digital service providers.
In an exclusive interview with ettech, Mr Pi said the reason for investing in India was to value the country’s market size and unique opportunities. He said unique opportunities come from three sources: the foundation of the country, a strong interest in technology, and the prime minister’s vision of digital India.
Since its entry into India in 2004, Google has successfully launched several products in India, including Saathi service, which enables women in rural areas to access the Internet, bolo, a reading guidance application to help children read, artificial intelligence flood forecasting system and Google payment service.
The United States advances and retreats
After the outbreak of the new crown and border conflict, the deadlock in Sino Indian relations has spread from politics to economy. From the amendment of FDI investment policy, to the customs inspection of Chinese goods one by one, and to the recent storm of 59 Chinese apps banned by the Ministry of communications, India’s official stance is very obvious: China is not welcome.
However, behind the 20 Indian unicorns, more than 10 have Chinese investors. If we push aside China and India’s Internet companies to seek development, where will the money come from?
Modi photographed America.
The most suitable investor is the Indian American top technology elites.
Not only Google, but the world’s technology giants have been doing a lot in India in the past year. Facebook, Amazon and Microsoft have all invested billions of dollars into the Indian market and have high hopes for India’s future. For these companies, India’s huge, young, Internet savvy population will bring huge economic potential.
In January 2020, Amazon CEO Bezos came to India and announced to invest US $1 billion in the next five years to support the digitalization of Indian SMEs.
In February 2020, Indian born Microsoft CEO Satya NADELLA visited India. During this period, NADELLA and Reliance Industries CEO Ambani talked about the cooperation between reliance Jiao and Microsoft in realizing digital India.
In April 2020, Facebook announced that it would invest $5.7 billion in Ambani’s Ji platforms in exchange for a 9.99% stake, and promised to transform India’s 60 million small businesses and mom and pop stores digitally.
Over the next two months, Intel, Qualcomm and other U.S. technology companies all extended their olive branches to Ambani. After 13 rounds of financing, Ji platforms obtained a total of 15.69 billion US dollars through the transfer of 25.2% shares. Among them, more than half of the “gold owners” are from the United States, and the other half are from the Middle East.
Since the end of April, 13 financing / moneycontrol have been obtained by Ji platforms
In addition, it is rumored that Yao has an investment from Microsoft to be finalized. According to several media reports at the end of May, Microsoft plans to invest $2 billion in Ji platforms to buy 2.5% of the shares, but the official information has not yet been released.
Whether the investment is successful or not, the relationship between old fellow Jio and Microsoft has long been stable. In August 2019, Microsoft announced that it has established a 10-year strategic cooperation with Ji. In the press release at that time, Microsoft said that Jiu would use Microsoft azure cloud platform to develop innovative cloud solutions focusing on the needs of Indian enterprises. Moreover, the two enterprises will work together to strengthen the application of leading technologies such as data analysis, artificial intelligence, cognitive services, blockchain, Internet of things and edge computing in SMEs.
La Lang Pei?
Is it India’s on-the-spot strategy or long-term policy to attract American enterprises to restrict Chinese capital?
However, judging from the history of American enterprises operating in India, India is not the promised place.
Mr. Pichai referred to Google’s many past achievements in India, but he also avoided failures. Google’s free WiFi program in India, for example, was terminated in February 2020.
Launched in 2014, the program has covered more than 400 railway stations in India by the time it ends. At these sites, users can surf the Internet for free without worrying about traffic. However, the free WiFi program has only been launched for more than a year, and Ambani’s telecom network service, Ji, has arrived. In a long period of time, Jiu gave users free 4G traffic, and also gave users free mobile phones that can be connected to the Internet, enabling tens of millions of Indians to join the mobile Internet. By contrast, Google’s site WiFi service is no longer important.
Google’s free Wi Fi service at Indian railway stations / the Quint
Although Facebook has successfully joined hands with Yao, it has been stuck in India for many years.
In 2014, Facebook proposed an Internet connection service called “free Basics” in India, aiming to help Indians in remote areas to access the Internet. However, due to doubts about its neutrality, it was resisted by many people, and was finally banned by the Indian Telecom regulatory authority in 2016 and abandoned.
In recent years, WhatsApp has also had a dispute with the Indian government over information control issues. The government asked WhatsApp to change its encryption to track the source of the message, but WhatsApp refused. Meanwhile, regulators have repeatedly shelved requests for WhatsApp payment services. WhatsApp pay, which has been in trial operation since January 2018, has not been approved by NCPI and the Central Bank of India until February 2020. But so far, WhatsApp pay has not been officially released in India. Instead, it was launched in Brazil in June.
The Indian government has also been skeptical about Amazon.
Bezos’s visit to India was not welcomed
When Bezos visited India in mid January 2020, Amazon was subject to an antitrust investigation by the Indian competition Council (CCI). Tens of thousands of peddlers took to the streets to protest that “Amazon has destroyed retailers.”.
On January 13, the Indian Competition Commission pointed out that Amazon’s four practices were suspected of monopoly: large discounts, promotion of preferred sellers on the website, exclusive sales of mobile phones, and giving priority to some sellers over others. The deep reason why Indian officials are so sensitive to e-commerce discounts is the impact of e-commerce on physical retail.
Therefore, when Bezos promised to spend $1 billion to help India’s small and medium-sized enterprises realize digitization, instead of being praised, India’s trade minister Piyush goyar broke the ice: Amazon’s $1 billion investment will not bring India any benefits.
Although Amazon has been losing money in India, Bezos is determined to gain a foothold in India based on its investment of more than $7 billion over the past seven years. Since Amazon entered India in 2013, by 2018, Amazon has invested $5 billion in India, of which $3 billion was announced in 2016. After another $2 billion investment in fripkart was announced in 2018.
Like petraey and Zuckerberg, Bezos believes that India’s market size will pay off in the future. In modi’s picture, India will play a key role in the global growth story. Since he has decided to push aside Chinese capital, it is an inevitable choice for modi to embrace American companies and capital.