Jio Platforms Ltd, the wholly-owned subsidiary of Reliance Industries Ltd has announced yet another investment in a span of just two months. The latest investment comes from global alternative asset firm TPG confirming 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 in Jio Platforms. This essentially translates into a 0.93 percent equity stake in Jio Platforms on a fully diluted basis for TPG. Jio Platforms has now raised a total of Rs 102,432.45 crore from leading global technology investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, and TPG since April 22, 2020, underlining its position in India as a pioneer of cutting edge technology, and a headlining act in India’s digital transformation saga.
WHAT THE TWO COMPANIES SAID
Speaking about the latest deal, Mukesh Ambani, Chairman and Managing Director of Reliance Industries, 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. We have been impressed by TPG’s track record of investing in global technology businesses that serve hundreds of millions of consumers and small businesses, making the societies we live in better.”
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. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come.”
JIO’S INVESTMENT RUN
After revolutionising India’s mobile data market, Reliance Jio has successfully diversified into a technology platform that is headlining India’s digital transformation. One of the largest private sector companies in India, Jio has seen a stunning run of investments in recent times. On April 22, Facebook, the world’s largest social media corporation, picked up a 9.99 percent stake in Reliance Jio for Rs 43,573.62 crore. Following Facebook was Silver Lake on May 3, which now has a 2.08 percent stake in Jio Platforms in exchange of a two-round investment of Rs 10,202.55 crore. The third entity to invest in Jio Platforms was Vista Equity Partners, which invested Rs 11,367 crore for a 2.32 percent stake in the company. General Atlantic then followed up with an investment of Rs 6,598.38 crore for a 1.34 percent stake. Investment firm KKR also followed up with a Rs 11,367 crore investment for a 2.32 percent stake in the company. This was followed by Abu Dhabi-based Mubadala that invested Rs 9,093.60 crore for a 1.85 percent stake in Jio Platforms as well. Just last week, Abu Dhabi-based investment group Abu Dhabi Investment Authority (ADIA), had invested Rs 5,683.50 crore in Jio Platforms, for a 1.16% equity stake in the firm.
WHO IS TPG?
TPG is a leading global alternative asset firm founded in 1992 with more than $79 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity. Over TPG’s more than 25-year history, the firm has built an ecosystem made up of hundreds of portfolio companies and a value-added network of professionals, executives, and advisors around the world. Its investments in global technology companies include Airbnb, Uber, and Spotify, among others.
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