Silver Lake to invest ₹4,550 crore more in Jio Platforms

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Silver Lake, along with co-investors, has agreed to invest an additional ₹4,546.80 crore in Jio Platforms, beyond the original investment of ₹5,655.75 crore by Silver Lake last month.

This brings the aggregate investment by Silver Lake and its co-investors to ₹10,202.55 crore. Silver Lake’s investment values Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore, and will translate into a 2.08% equity stake in Jio Platforms on a fully diluted basis.

With this investment, Jio Platforms has raised ₹92,202.15 crore from leading technology investors in less than six weeks.

Earlier, Abu Dhabi-based sovereign investor Mubadala agreed to invest ₹9,093.60 crore in Mukesh Ambani-led Jio Platforms for 1.85% stake, conferring Jio Platforms with an enterprise value of ₹5.16 lakh crore.

With this investment, Jio Platforms, a wholly owned subsidiary of Reliance Industries (RIL), has raised a total of ₹87,655.35 crore from leading global technology and growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic and KKR and Mubadala in less than six weeks.

Jio Platforms, a next-generation technology platform focussed on providing high-quality and affordable digital services across India, has more than 388 million subscribers.

Mukesh Ambani, CMD, Reliance Industries, said, “I am delighted that Mubadala, one of the most astute and transformational global growth investors, has decided to partner us in our journey to propel India’s digital growth towards becoming a leading digital nation in the world. Through my long-standing ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy. We look forward to benefitting from Mubadala’s experience and insights from supporting growth journeys across the world.”

Jio Platforms has made significant investments in technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things augmented and mixed reality and blockchain.

Jio’s vision is to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, micro-businesses and farmers so that all of them can enjoy the fruits of inclusive growth.

Khaldoon Al Mubarak, managing director and group CEO, Mubadala Investment Company, said: “We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to… address critical challenges and unlock new opportunities. We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India’s digital growth journey. With Jio’s network of investors and partners, we believe that the platform company will further the development of the digital economy.” Mubadala investments are aimed at and partners to advancing Abu Dhabi’s diversified, globally integrated economy across sectors that are driving global growth and addressing critical challenges.

A significant aspect of this mandate is transformative information and communications technology investments which include cognitive computing, ICT infrastructure, telecoms, and satellite operations.

To further its commitment to innovation and technology, Mubadala established its ventures arm in 2017 to partner early with visionary founders and support innovative businesses.

Established in 2017, Mubadala’s ventures business currently manages several venture funds in the U.S., Europe and West Asia. Its portfolio spans advanced manufacturing, semiconductors, metals and mining and pharmaceutical and medical technology, among others.

Augurs well for all telcos to benefit

renewable energy and utilities, and the management of diverse financial holdings“Barring Facebook — for whom this might be a strategic round — all investors are exit-focussed equity investors, which sends a strong signal to the market that either the ratios and/or multiples for Indian telcos are expected to continue to improve, which will help the likes of Mubadala, KKR, Vista, GA and Silverlake book returns,” Utkarsh Sinha, MD of boutique investment firm Bexley Advisors, told The Hindu,

“Importantly, Jio’s raise should serve as the wind in the sails for Airtel as well, which is also in the market and looking to raise equity both to retire debt and fuel growth. These will be exciting times for Indian telcos.”

RIL shares on BSE closed up marginally at ₹1,580.6 in a firm Mumbai market on Friday, valuing the firm at ₹10.02 lakh crore.

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