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Jio-L Catterton deal: 5 key things to know about L Catterton's investment in Jio Platforms

L Catterton's investment comes in a span of a little less than two hours after private equity investor TPG invested Rs 4,546.80 crore for a 0.93 percent stake.

June 14, 2020 / 04:33 PM IST

In a span of a little less than two hours after private equity investor TPG invested Rs 4,546.80 crore for a 0.93 percent stake, private equity giant L Catterton has announced that it will invest close to Rs 1,900 crore in exchange in Jio Platforms.

L Catterton's investment adds to over Rs 1 lakh crore investment that Jio Platforms has attracted in the past seven weeks.

Here are five key things to know about the deal:

 > L Catterton will invest Rs 1,894.50 crore in exchange for a 0.39 percent stake in Jio Platforms assigning it an equity valuation of Rs 4.91 lakh crore and an enterprise valuation of Rs 5.16 lakh crore.

> After including L Catterton's investment the total amount raised by Reliance in Jio Platforms now stands Rs 104, 326.65 crore.

> Jio Platforms now joins the likes of Peloton, Vroom, ClassPass, Owndays, FabIndia, in which L Catterton, that has roughly $20 billion of equity capital across seven fund strategies in 17 offices globally.

>L Catterton's deal with Jio Platforms is the tenth investment deal done by Reliance in seven weeks after Facebook first bought a 9.99 percent stake on April 22.

>Jio has now sold 22.38 percent stake after including L Catterton's 0.39 percent stake purchase.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

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first published: Jun 13, 2020 10:26 pm