Over the days, Reliance Jio has made it to the news quite often and every headline made a mention of investment into the digital arm of Jio. Whether it was tech giant Facebook, US private equity firm Silver Lake, Vista Equity Partners, or another US-based fund General Atlantic, all of them encircled around pouring in dollars. Now, it’s the turn for private equity firm KKR, that is all set to pour in an amount of INR.11, 367 crore in Jio Platforms, in exchange for a 2.32% stake.
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The Subhead of the above article states that the investment by General Atlantic marked the fourth investment in four weeks in Jio Platforms; guess we would have to paraphrase it to the fifth investment in four weeks fetched by Jio Platforms. Analysts expressed the view that more such deals are going to take place in the near future.
As per a RIL release, “This transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is KKR’s largest investment in Asia and will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis”.
This latest deal would fetch Jio Platforms to get a combined INR. 78,562 crore from the past five investments. Comprised mostly of telecom business under Reliance Jio Infocomm, which is so far the largest in India with around 388 million subscribers, RIL’s business has been aggravating over the days. The other digital platforms of RIL are Jio Cinema, Jio Saavn, and Haptik.
Recently on May 18th, General Atlantic said that it would be buying a 1.34% stake in Jio Platforms for INR. 6,598.38 crore, while Vista Equity Partners said on May 8th that it would be picking up a 2.42% stake for INR. 11,367 crore. Just before that Silver Lake, US private equity firm said it would be investing around INR. 5,655.75 crore in Jio Platforms for a 1.15% stake, and finally on April 22nd, Facebook said it would put in $5.7 billion for a 9.99% stake.
Here’s the media release from the official handle of Reliance Jio.
Chairman and Managing Director of Reliance Industries, Mukesh Ambani, said, “ I am delighted to welcome KKR, one of the world’s most respected financial investors as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians. KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years,” RIL chairman Mukesh Ambani said in the statement.
As per KKR is concerned, KKR is making the investment from its Asia private equity and growth technology funds. KKR was founded in 1976 and some of its investments include BMC Software, ByteDance, and GoJek. They have invested in more than $30 billion in tech organisations.
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