Investments into Reliance Jio cross one lakh crore with latest addition of TPG and L Catterton
In a span of less than two months, Reliance Industries has garnered more than one lakh crore from global marquee investors for its digital services subsidiary Jio Platforms with the announcement of two more investments on Saturday from TPG and L Catterton.
TPG, a leading alternate asset firm, 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, according to a statement issued by Reliance Industries.
The investment by TPG will translate into a 0.93 percent equity stake in Jio Platforms on a fully diluted basis.
On the investment by TPG, Chairman and Managing Director of Reliance Industries Mukesh Ambani, said, “Today, I am happy to welcome TPG as valued investors in our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem.”
He added, “We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better.”
Reliance Industries Chairman and Managing Director Mukesh Ambani
The other investor into Jio Platforms is L Catterton, a consumer focused private equity firm which will be investing Rs 1894.50 crore. This investment also pegs the valuation of Jio Platform at the same level of TPG, and L Catterton gets 0.39 percent stake in Jio Platforms on a fully diluted basis.
It has literally been an investment spree into Jio Platforms ever since Facebook announced its investment on April 22.
“With this investment, Jio Platforms has raised Rs 104,326.95 crore from leading global investors, including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton since April 22, 2020,” the statement from Reliance Industries said.
These nine investors on a combined basis hold 22.38 percent stake in Jio Platforms. Facebook holds the largest stake at 9.99 percent.
Besides Facebook, Reliance Industries has attracted some of the leading global investment powerhouses and this comes at a time when the world is deeply impacted by the coronavirus pandemic resulting in recession kind of environment for the global economy.
On the investment into Jio Platforms, Jim Coulter, Co-CEO TPG, said, “We are excited to partner Reliance to invest in Jio. As an investor in growth, change, and innovation for over 25 years – and with a longstanding presence in India -- we are excited to play an early role in Jio's journey as they continue to transform and advance India's digital economy. Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services.”
With more than 388 million subscribers, Jio Platforms provides telecom, broadband, and digital content services. Leveraging advanced technologies like Big Data Analytics, Artificial Intelligence, Internet of Things, Augmented and Mixed Reality, and Blockchain, this platform is focused on providing affordable internet connectivity with content to match.
On the investment into Jio Platforms, Michael Chu, Global Co-CEO of L Catterton, said, “We are strong supporters of fostering growth through product development, enhanced digital capabilities, and strategic alliances. We look forward to partnering with Jio, which is uniquely positioned to execute on its vision and mission to transform the country and build a digital society for 1.3 billion Indians through its unmatched digital and technological capabilities.”