Google stake in Voda-Idea could heat up race for digital ecosystem

A potential investment in Vodafone Idea Ltd by Alphabet Inc.’s Google will further heat up the race to create the next big connected ecosystem in India, said analysts.

Google had in January announced a partnership with Bharti Airtel Ltd to extend its G Suite services to Airtel subscribers. The US internet giant has been working closely with the enterprise team at Airtel for a few years now. However, Google could potentially be hedging its bets with an investment in Vodafone Idea.

Reliance Industries’ Jio Platforms Ltd recently secured more than $10 billion in investments from Facebook and PE firms such as KKR, General Atlantic, Vista Equity Partners and Silver Lake. This has forced other telcos and technology firms to consider their options in India which, other than China, is the fastest-growing digital services market.