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Here's why Facebook, Silver Lake, Vista, General Atlantic and KKR invested in Jio

KKR's is the fifth such infusion in Jio Platforms as, over the past one month, leading technology investors such as Facebook, Silver Lake, Vista and General Atlantic have announced aggregate investments into the company.

May 22, 2020 / 09:13 AM IST
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Reliance Industries Ltd (RIL) on Friday said KKR has become the fifth company to invest in Jio Platforms. KKR bought a 2.32 percent stake for Rs 11,367 crore.

This is the fifth global company to invest in Jio in the past five weeks. So far, Jio Platforms has attracted a total investment of Rs 78,562 crore. Other investors in Jio Platforms are: FacebookSilver LakeVista and General Atlantic.

The stake-buy in Jio is biggest for KKR in Asia so far.

Henry Kravis, Co-Founder and Co-CEO of KKR, said, “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next-generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution. We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific.” 

Reliance Jio- Facebook deal

The first major infusion among the five equity deals was from Facebook, which bought a 9.9 percent stake in Reliance Jio for $5.7 billion (Rs 43,574 crore), The deal valued Jio at Rs 4.62 lakh crore ($65.95 billion).

Commenting on the deal, the Facebook said, "This investment underscores our commitment to India and our excitement for the dramatic transformation that Jio has spurred in the country. In less than four years, Jio has brought more than 388 million people online, fueling the creation of innovative new enterprises and connecting people in new ways. We are committed to connecting more people in India together with Jio.” The deal aims to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India.

Reliance Jio- Silver Lake deal

American private equity giant Silver Lake Partners bought 1 percent stake in Jio Platforms for Rs 5,655.75 crore ($750 million) in a deal that took Jio's enterprise value to Rs 5.15 lakh crore — a 12.5 premium to the value indicated by Facebook. 

Commenting on the transaction with Silver Lake, Mukesh Ambani, Chairman and Managing Director - Reliance Industries Ltd, said, “I am delighted to welcome Silver Lake as a valued partner in continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. Silver Lake has an outstanding record of being a valuable partner for leading technology companies globally. Silver Lake is one of the most respected voices in technology and finance. We are excited to leverage insights from their global technology relationships for the Indian Digital Society’s transformation.”

Reliance Jio- Vista Equity deal

Vista Equity Partners, a US-based private equity firm that runs the world’s largest exclusively tech-focused fund, picked up a 2.32 percent stake in Jio Platforms for Rs 11,367 crore, making it the third high-profile investment in the Reliance Industries Ltd (RIL) unit in as many weeks and underlining its status as a next-generation software and platform company.

After signing the deal with Reliance Jio, Robert F Smith, founder, chairman and CEO of Vista, said, “We believe in the potential of the Digital Society that Jio is building for India. Mukesh’s vision as a global pioneer, alongside Jio’s world-class leadership team, have built a platform to scale and advance the data revolution it started. We are thrilled to join Jio Platforms to deliver exponential growth in connectivity across India, providing modern consumer, small business and enterprise software to fuel the future of one of the world’s fastest-growing digital economies.”

Reliance Jio- General Atlantic deal

Reliance Industries, on May 17, announced that growth equity firm General Atlantic Partners will invest Rs 6,598.38 crore in Jio Platforms. General Atlantic bought a 1.34 percent stake in Jio Platforms, giving Jio an enterprise value of Rs 5.16 lakh crore.

At the time of signing, Bill Ford, Chief Executive Officer of General Atlantic, said, “As long-term backers of global technology leaders and visionary entrepreneurs, we could not be more excited about investing in Jio. We share Mukesh’s conviction that digital connectivity has the potential to significantly accelerate the Indian economy and drive growth across the country. General Atlantic has a long track record working alongside founders to scale disruptive businesses, as Jio is doing at the forefront of the digital revolution in India.”

Read all KKR-Jio deal stories here

Disclaimer: Reliance Industries (RIL) is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd
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