Intel Capital to Invest INR 1,894.50 crore in Jio Platforms Intel Capital, the investment arm of Intel Corporation, is the 11th investor to announce an investment in Jio Platforms
By Shipra Singh
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The investment arm of Intel Corporation, Intel Capital has announced an investment of INR 1,894.50 cr in Jio Platforms, a unit of Mukesh Ambani owned Reliance Industries (RIL), in return of 0.39 per cent stake.
Intel Capital is the eleventh investor to pump in funds into Jio Platforms over the last three months, taking the total investment amount to INR 117,588.45 crore in return of 25.09 per cent stake sale of its digital unit Jio Platforms. The other global technology investors include Facebook, Silver Lake, Vista, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF. Amongst these, social media giant Facebook has infused largest capital of INR 43,574 crore ($5.7 bn) into the company.
The deal with Intel comes at an equity value of INR 4.91 lakh crore and an enterprise value of INR 5.16 lakh crore, RIL said.
"Intel is a true industry leader, working towards creating world-changing technology and innovations. Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally. We are therefore excited to work together with Intel to advance India's capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians," RIL Chairman Ambani said.
Intel Capital is known for investing in disruptive technology areas like cloud computing, artificial intelligence and 5G. Intel Capital, a division of Intel Corporation, was set up to manage corporate venture capital, global investment, mergers and acquisitions. Intel Corp has operated in India for more than two decades and employs thousands of employees in the country across Bengaluru and Hyderabad.
On signing the deal, Wendell Brooks, President of Intel Capital President said, "Jio Platforms' focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel's purpose of delivering breakthrough technology that enriches lives. We believe digital access and data can transform business and society for the better. Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence."
Jio Platforms is the umbrella entity of phone and data unit Jio Infocomm and several other app platforms such as JioMart, JioSaavn and JioCinema.
On 19 June, Ambani declared RIL a net debt-free company after raising combined capital of INR 1.75 lakh crore from a clutch of global investors and through its rights issue. RIL had set March 2021 as the deadline to cut its debt of INR 1.61 lakh crore. "I have fulfilled my promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March 2021," Ambani had stated in a company statement.
