Silver Lake Partners’ — one of the biggest private equity firms — investment of $750 million in Reliance Industries’ Jio Platforms is a sign of global technology investors’ confidence on the Indian digital ecosystem and its growth potential.
The fact that Reliance has managed to garner a second tranche of equity investment within 10 days of Facebook’s $5.7 billion round, that too at a 12.5 percent premium, is an indication of company’s growth prospects, readiness and trajectory. With the Silver Lake investment, Jio Platform’s valuation of $65.95 billion, forms 53 percent of the total Reliance Industries’ valuation of $121 billion. Clearly, Jio is evolving into a significant player within the group.
For Silver Lake, this investment and deal is beneficial in three key areas.
First, India is one of the biggest and fastest growing digital and Internet economies in the world, and with a significant headroom for growth. In the last couple of years, this market has witnessed several Chinese companies and their products enter and grow exponentially. Beyond communication, services such as media consumption, creation, digital commerce, gaming, productivity, etc., have only recently been introduced to mass market consumers in India.