Jio Platforms raises $1.2B from Abu Dhabi's state fund Mubadala
Abu Dhabi's state fund Mubadala is investing $1.2 billion (Rs 9,093.60 crore) in Reliance's Jio Platforms for a 1.85 percent equity stake.
This is Jio's sixth foreign investment in six weeks, and follows billion-dollar deals with Facebook ($5.7 billion), Silver Lake Partners ($747 million), Vista Equity Partners ($1.5 billion), General Atlantic ($870 million), and KKR’s Asia PE Fund ($1.5 billion).
With Mubadala's investment, Reliance has now diluted 18.97 percent stake in Jio Platforms for Rs 87,655.35 crore (about $12 billion).
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am delighted that Mubadala, one of the most astute and transformational global growth investors, has decided to partner with us. Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy."
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Mubadala's investments cut across sectors such as cognitive computing, ICT infrastructure, telecoms, satellite operations, medical technology, healthcare, agribusiness, real estate, and more.
It manages a portfolio of $229 billion spanning five continents. In 2017, Mubadala established its Ventures arm to support innovative tech-led businesses.
Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said in a statement,
"We are committed to investing in, and actively working with, high growth companies pioneering technologies to address critical challenges and unlock new opportunities. We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India's digital growth journey."
Jio Platforms has diluted 18.97% stake to foreign investors.
Reliance is expected to strike at least one more deal to dilute some portion of Jio Platforms, which is presently valued at $65 billion.
Reports indicate that Microsoft is planning to invest $1 billion to $2 billion in the internet giant. Reliance wants to make Jio debt-free by the end of 2020 before taking it public in the next 12 to 24 months.
Global investors are making a beeline for Jio Platforms as it offers them a foothold in one of the largest consumer markets in the world.
Jio currently has 388 million subscribers on its telecom network. It also offers a diversified digital ecosystem with 25+ services, including telecom, ecommerce, gaming, entertainment, healthcare, cloud, security, IoT, and more.
The Jio-Mubadala transaction is subject to customary regulatory approvals.