Jio Platforms to Jump 66% in Valuation by FY22, To Be Valued at $110 Billion: BofA Securities

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Jio Platforms (JPL) has become one of the biggest and most valued companies in India. In the past few weeks, it has attracted investments of more than $10 billion from companies like Facebook, Silver Lake, Vista Equity Partners, and more. As a result of all these investments, the telco’s current valuation stands at $66 billion. According to BofA Securities, this valuation is about to make a 66% jump and Jio Platforms could be valued at $110 billion dollars by FY22. The cause behind this drive would primarily be the increase in average revenue per user (ARPU).

ARPU of Reliance Jio to Grow By 53%

The average revenue per user (ARPU) is one of the most important metrics in determining how good a telco is doing in the market. Right now, the ARPU of Reliance Jio stands at Rs 131 and it is expected to grow by 53% to FY22 and will then stand at Rs 200. Another thing which is going to act as a catalyst in Reliance Industries growth is the upcoming IPO of Reliance Jio. It will help the company in increasing its valuation.

Jio’s Market Share Might Inch to 45%

According to BofA Securities, Jio Platforms Limited is going to benefit a lot from the rise in ARPU. It is likely going to help the telco in garnering incremental revenues from the app subscriptions and ad businesses. From the estimates, it is likely that Jio might have 45% of the telecom market share by FY22.

Reliance Jio could have 538 million mobile users and 25 million broadband users along with 11 million enterprise customers by FY22. BofA in a note said, “With cellular investments behind, Jio is focusing on its (home) broadband rollout, with an estimated 25 million home-passes, generating Rs 700 ARPU in FY22) and also targeting the SME enterprise market where it could offer bundled packs with Microsoft.”

Right now, just behind Reliance Jio stands Bharti Airtel with a valuation of $40 billion. Bharti Airtel is right in the competition with Jio providing high-bandwidth services to its customers. It will be interesting to see how Bharti Airtel copes up with its fierce competitor Reliance Jio in the future.

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