Reliance Jio raises $253M from Intel's venture capital arm in 12th foreign investment
US-based semiconductor giant Intel Corporation is investing Rs 1,894 crore (about $253.5 million) in Reliance's Jio Platforms through its venture arm Intel Capital. This is Jio's 12th continuous foreign investment in a span of 11 weeks.
With this, Reliance Industries has diluted more than 25 percent stake in Jio, taking the total investment amount to Rs 117,588.45 crore. Intel's shareholding in the $65-billion Jio will be 0.39 percent.
Intel joins a list of elite strategic and equity investors, including Facebook (Jio's largest minority shareholder), Silver Lake Partners, Vista Equity Partners, General Atlantic, KKR, Mubadala, additional investments from Silver Lake companies, Abu Dhabi Investment Authority (ADIA), TPG Capital, L Catterton, and Saudi Arabia's Public Investment Fund.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said,
“Intel is a true industry leader, working towards creating world-changing technology and innovations. Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally. We are therefore excited to work with Intel to advance India’s capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians.”
Intel Capital invests in innovative companies with a sharp focus on disruptive technologies like cloud computing, Artificial Intelligence, and 5G – areas that are synced with Jio's broad vision. The VC has invested $12.9 billion in more than 1,582 companies worldwide in the last three decades.
Out of its portfolio companies, 692 have successfully gone public or participated in a merger. This makes Intel a key participant in Jio's future IPO plans. Reliance is likely to take Jio public in the next 12 to 24 months.
Wendell Brooks, Intel Capital President, said,
“Jio Platforms’ focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel’s purpose of delivering breakthrough technology that enriches lives. We believe digital access and data can transform business and society for the better. Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence.”
Foreign investors are making a beeline for Jio Platforms as it allows them to gain a strong foothold in one of the largest consumer markets in the world through a truly diversified ecosystem, which has a deep presence across offline and online channels.
Earlier in June, Reliance had also announced that it was a debt-free entity after subsequent rounds of fundraising and a Rs 53,000-crore rights issue.
The Jio-Intel transaction is subject to customary regulatory approvals in India.
(Edited by Teja Lele Desai)