TPG to invest Rs 4,546.80 Crore in Jio Platforms for 0.93 pc Equity Stake

15 June, 2020 | newsx bureau

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After the TPG investment, a raise of Rs 102,432.45 crore from leading global technology investors makes for the largest continuous funds in the world. The COVID-19 pandemic only makes the leap more...

In an unprecedented ninth investment in Jio Platforms in seven weeks, global alternative asset firm TPG will invest Rs 4,546.80 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, Reliance Industries Limited (RIL) said on Saturday.

“Reliance Industries Limited and Jio Platforms Limited, India’s leading digital services platform, announced today that global alternative asset firm TPG will invest Rs 4,546.80 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore,” the company said in a release.

The investment will translate into a 0.93 per cent of the equity stake in Jio Platforms on a fully diluted basis for TPG.

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“With this investment, Jio Platforms has raised Rs 102,432.45 crore from leading global technology investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, and TPG since April 22, 2020,” the release said.

At Rs 102,432.15 crore, it is the largest continuous funds raised by a company anywhere in the world.

The release said it is remarkable that all these investments were done amidst a global lock-down, “clearly signifying India’s digital potential and Jio’s business strategy”.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “Today, I am happy to welcome TPG as valued investors in our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem. We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better.”

Jim Coulter, Co-CEO TPG, said, “We are excited to partner Reliance to invest in Jio. As an investor in growth, change, and innovation for over 25 years – and with a longstanding presence in India — we are excited to play an early role in Jio’s journey as they continue to transform and advance India’s digital economy. Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come.”

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Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers.

TPG is a leading global alternative asset firm founded in 1992 with more than USD 79 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity.

The release said Jio Platforms has made significant investments across its digital ecosystem, powered by leading 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 Platforms’ 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,” it said.

The release said the investment reaffirms Jio’s “continuing attraction among global investors for being the best representative of India’s digital potential deep understanding of the Indian markets, the rapid digitisation opportunity post-COVID and capabilities to bring cutting-edge technologies and tools”.

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