Get All Access for $5/mo

Jio Platforms Nears INR 1 Trillion Investment With Silver Lakes Pumping Additional INR 4,546.80 cr With this seventh deal in less than six weeks, Jio Platforms has raised INR 92,202.15 cr from 6 global technology investors

By Shipra Singh

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

Entrepreneur India

US private equity firm Silver Lakes, along with its co-investors on 5 May announced an additional investment of INR 4,546.80 cr in Jio Platforms one month after it declared to pump INR 5,655.75 cr in the digital services platform.

After the latest deal, the aggregate investment by Silver Lake and its co-investors in Jio Platforms, a unit of Mukesh Ambani owned Reliance Industries (RIL) stands at INR 10,202.55 cr.

"I would like to emphasise that Silver Lake's additional investment in Jio Platforms, within a span of five weeks during the COVID-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy, which will surely grow bigger with comprehensive digital enablement," RIL Chairman Ambani said in a company statement.

The PE firm's investment values Jio Platforms at an equity value of INR 4.91 lakh crore and an enterprise value of INR 5.16 lakh crore, and will translate into a 2.08 per cent equity stake in Jio Platforms on a fully diluted basis, said the company statement.

Silver Lake is one of the world's largest technology investors with investment holdings in companies such as Alibaba, Airbnb, Dell, Alphabet's Verily, Ant Financial and Twitter, among others. The PE firm has approximately $40 billion in combined assets under management and committed capital with a team of approximately 100 investment and operating professionals located around the world.

Commenting on the additional capital, Egon Durban, Co-CEO and Managing Partner, Silver Lake said, "We are excited to increase our exposure and bring more of our co-investors into this opportunity, further supporting Jio Platforms in its mission to bring the power of high-quality and affordable digital services to a mass consumer and small businesses population. The investment momentum behind Jio validates a compelling business model and underscores our admiration for Mukesh Ambani, his team and their courageous vision in creating and building one of the world's most remarkable technology companies."

Abu Dhabi based investor Mubadala also announced funding of INR 9,093.60 cr in Jio Platforms on 5 May. So far, six global technology investors—Facebook, Silver Lake, Vista, General Atlantic, KKR and Mubadala—have announced aggregate investments worth INR 92,202.15 cr into the RIL owned unit. Amongst these, social media giant Facebook has declared largest investment of INR 43,574 crore ($5.7 bn).

The additional deal with Silver Lakes inches RIL a step closer to its plan of cuting its debt of INR 1.53 trillion and become net debt free by March 2021. Late in April, RIL had stated that it will achieve the zero net debt status ahead of schedule as it is confident about completing the capital raising programme totaling over INR 1.04 lakh crore by Q1 of the current financial year. After today's deal, RIL is short of about INR 11,790 cr of this target.

Shipra Singh

Entrepreneur Staff

Freelance Journalist

Branding

ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Data & Recovery

10 Smart Ways to Earn or Build Backlinks to Your Website

Ever heard of the "broken-link building method"? We hadn't, either. But it sure sounds useful.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Growth Strategies

AMD Confident About Increasing Market Share In India

The semiconductor company is positive about the business environment in India on the back of growing investments in data centers and AI, Cloud repatriation, as well as technology refresh taking place across companies on both server side and client devices

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.

News and Trends

Apple Dethrones Nvidia to Regain Its Position as World's Second Most Valuable Company

Apple has reclaimed its spot as the second most valuable company in the world, overtaking Nvidia, with a market cap of $3.26 trillion.