Reliance Jio records Rs 2,520 Cr profit, adds 15 million new users in June quarter

Reliance Jio's profits surged 183 percent in a quarter defined by a staggering fundraise of over $20 billion. Data traffic also increased due to the lockdown.

Reliance Jio recorded profits of Rs 2,520 crore in the June quarter. This is a massive 183 percent increase from the year-ago period. Its operating revenues grew 33.7 percent to reach Rs 16,557 crore.

The telecom network also recorded a gross addition of 15 million new users in the quarter, taking its total subscriber base to 398.3 million.

Reliance Industries Chairman Mukesh Ambani

Jio's data traffic also went up by 30 percent year-on-year to 14.2 exabytes (EB) or 1,420 crore GB, growing 30.2 percent over last year. Customer engagement during the quarter also went up due to the nationwide lockdown. Average mobile data consumption per user per month stands at 12.1 GB at present.

In a media statement, Reliance Industries Chairman and MD Mukesh Ambani said,

“Jio started with a vision of connecting everything by building a robust and secure wireless and digital network and extending the benefits of digital connectivity to everyone in India. Thirteen investors, which include the largest technology companies and investors globally, now share a common vision with us."

The quarter was defined by Jio's continuous fundraise from April to June, during which it raised a staggering Rs 152, 056 crore (over $20 billion) from 13 foreign investors across 14 deals.

Infographic: Anubhav Anurag | YS Design

Jio's high-profile investors include Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, Abu Dhabi Investment Authority, TPG Capital, L Catterton, Saudi Arabia Public Investment, Intel Capital, and Qualcomm Ventures.

Post completion of these investments, Reliance would hold 66.48 percent equity stake in Jio Platforms on a fully diluted basis, the company stated.

Ambani added,

"Jio, with partnerships across promising Indian startups and globally renowned technology companies, is set to drive the next leg of hyper growth for digital businesses. Our growth strategy is aimed at meeting the needs of all the 1.3 billion Indians. We remain focused on playing a leading role in India's transformation into a digital society."

Jio Platforms is valued at over $65 billion. This is higher than the valuations of internet economy giants like Zoom ($42 billion), Uber ($35 billion), Twitter ($34 billion), and Airbnb ($26 billion). 

Industry experts believe that Reliance is looking for a $100-billion IPO for Jio in foreign shores. This is likely to be completed over the next 12 to 24 months.

Edited by Saheli Sen Gupta