Jio Platforms, the digital subsidiary of Reliance Industries, has received its ninth and tenth investment since April. AIDA has invested Rs 5,683.50 crore in the company for a 1.16 percent stake. And now Jio has announced that TGP and L Catterton are the ninth and tenth investors. With the newest investment, Jio Platforms has raised a total of Rs 104,326.95 crore.
Reliance Jio Platforms’ ninth and tenth investors
TGP and L Catterton are joining Facebook, Silver Lake, Vista, General Atlantic, KKR and Mubadala and Abu Dhabi Investment Authority as an investor in Jio Platforms. To recall, Silver Lake invested twice in the technology subsidiary of Reliance Industries. This is the largest continuous fund raising by a company anywhere in the world. Like previous investors, AIDA’s investment came at an equity valuation of Rs 4.91 lakh crore. TPG will invest Rs 4,546.80 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. While L Catterton is investing Rs 1894.50 crore in Jio Platforms. This investment values at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. L Catterton’s investment will translate into a 0.39 percent equity stake in Jio Platforms.
In this month itself, we have seen three big investments in Reliance Jio Platforms. Mubadala invested Rs 9,093.60 crore for a 1.85 percent stake and it was followed by Silver Lake’s additional investment of Rs 4,546.80 crore. This forms an unprecedented eighth investment in less than seven weeks and Jio Platforms gets its seventh investor. The announcement comes on the back of rumors that Microsoft, Twitter and Saudi Arabia’s Sovereign Wealth Fund are also weighing investment in the technology arm.
The single major driver for Reliance Jio Platforms‘ investment spree is Reliance Jio, the largest mobile network in the country with over 388 million subscribers. The investment is also a vote of confidence to Mukesh Ambani’s plan to digitize the nation. Reliance has repeatedly said that the company will leverage Jio’s network technology to build a digital society. It aims to digitize services for consumers, allowing them to shop online and pay online.
With the investment, Reliance Industries aims to reduce its debt and is expected to go debt-free by the end of this year. The company has now truly become an oil to telecom conglomerate. And we could see more of these investments in the coming weeks. The real question right now is whether these investments will get extended to Vodafone Idea Ltd and Bharti Airtel as well. India’s telecom market is seeing resurgence and Reliance Jio might not be the only beneficiary.
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