Jio Platforms Is COVID-Resistant With yet another investment, this time from the Abu Dhabi Investment Authority, the digital unit of Mukesh Ambani-led Reliance Industries has now raised INR 97,885 crore in less than seven weeks.

By Debroop Roy

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Entrepreneur India

Jio Platforms, the digital unit of Reliance Industries, announced on Sunday that Abu Dhabi Investment Authority (ADIA) would invest INR 5,683.50 crore in the company, reiterating the parent company's intention to be net debt free by March 2021.

This deal, along with the earlier announced investments from Facebook, Silver Lake Partners, Vista Equity Partners, General Atlantic, KKR and Mubadala, have given the Mukesh Ambani-led company a staggering INR 97,885 crore in less than seven weeks.

"Jio Platforms is at the forefront of India's digital revolution, poised to benefit from major socioeconomic developments and the transformative effects of technology on the way people live and work. The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution," said Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA, in a statement.

ADIA, an institution that invests on behalf of the government of Abu Dhabi, will hold a 1.16 per cent stake in Jio Platforms through the investment, putting the equity value of the company at INR 4.91 lakh crore and enterprise value at INR 5.16 lakh crore.

"I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities," said Mukesh Ambani, chairman and managing director of Reliance Industries.

Separately, Reliance Industries' rights issue of INR 53,124 crore saw a closure on Wednesday with investors subscribing to it 1.59 times. According to a statement released by the company, the overall commitment would amount to over INR 84,000 crore.

And while Jio Platforms being an attractive investment opportunity for global investors wouldn't come across as a surprise to anyone, what has especially shown the strength of the company is that this has happened during a global crisis that is COVID-19. It has hurt businesses across sectors, including some of the biggest names, forcing many to take a backseat.

In April, Reliance said that it would achieve zero net debt ahead of schedule, confident that it would complete its capital raise totalling INR 1.04 lakh crore by the end of the first quarter of this year.

The company's net debt was INR 1.61 lakh crore as of March 31, 2020 with major chunks having been spent over the last few years to set up and expand its digital offerings that include the hugely popular telecom operator Jio as well as the recently launched retail operations to challenge the likes of Amazon and Flipkart.

Debroop Roy

Former Correspondent

Covering the start-up ecosystem in and around Bangalore. Formerly an energy reporter at Reuters. A film, cricket buff who also writes fiction on weekends.

Related Topics

Growing a Business

More Than 90% of Startups Don't Make It. This CEO Reveals What It Takes to Not Only Survive — But Thrive.

Learn what it takes to grow a company while also scaling as a leader.

Business Plans

How You Can Use the 80/20 Rule to Unlock Success and Maximize Your Impact

Our success is determined by where we focus our efforts.

Starting a Business

How Business Community Is Making CEO Life Less Ghastly

People are starting to notice that if you want to get the best out of entrepreneurs, you have to support them. But how?

Business News

Mark Cuban Is Reportedly Selling the Dallas Mavericks to Another Billionaire

Cuban purchased a majority stake in the NBA team in 2000 for $285 million.

Business News

A Woman Is Suing a Popular Salad Chain After Allegedly Finding a 'Chopped' Human Finger in Her Bowl

The incident allegedly occurred at a Chop't location in Mount Kisco, New York, on April 7, 2023.

Business Solutions

Perfect Your Photo Editing Skills with This AI Photo Editor — Just $150 for Cyber Week

Luminar Neo offers entrepreneurs an AI-powered photo editing software that can save time and money.