KKR to Invest Rs 11,367 Crore in Jio Platforms,

Founded in 1976, KKR has a long history of building leading global enterprises and successfully investing in businesses in the technology sector

Reliance Industries Limited and Jio Platforms Limited today announced that KKR would invest Rs 11,367 crore into Jio Platforms. This transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is KKR’s largest investment in Asia and will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis. Over the last month, leading technology investors, such as Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms, and Facebook leads the list with around Rs 45,000 crore investment.

What Exactly is Jio Platforms?

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

KKR: History and Why It Invested in Jio Platforms

Founded in 1976, KKR has a long history of building leading global enterprises and successfully investing in businesses in the technology sector, including BMC Software, ByteDance and GoJek through its private equity and technology growth funds. Since inception, the firm has invested over $30 billion (total enterprise value) in tech companies, and today the firm’s technology portfolio has more than 20 companies across the Technology, Media and Telecom sectors. In addition, India has been a key strategic market for KKR with a history of investing in the country since 2006.

Henry Kravis, Co-Founder and Co-CEO of KKR, said, “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next-generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution. We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and the Asia Pacific.”

Furthermore, it is also said that KKR is making the investment from its Asia private equity and growth technology funds. The transaction is subject to regulatory and other customary approvals.

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

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VishalAvinash Meenachetan-BengalurusaketMani Recent comment authors
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Mani
Mani

Is Jio mobile network a part of Jio platforms?

Avinash Meena
Avinash Meena

yes restructured their operations, under one umbrella company Jio Platforms

Chetan
Chetan

Jio is single handedly building 5G hardware in house by white labeling it from South korea and Taiwan. They will save huge cost in 5G deployment in future unlike AIrtel who will have to depend upon Nokia, ericsson, cisco etc… Samsung agreement with Jio was for 10 yrs and it is going to get over. in future jio will not even use samsung also. Currently also Jio design lot of its hardware and software in house. Example- VoWIFI, Volte, OSS layer. Network switches(Radysis company which it bought 2 yrs back). All these acquisition and inhouse work is helping jio save… Read more »

Kunal
Kunal

Jio parent to become debt free with in 10 months . At present debt levels are around 1,53,000 crores after setting aside towers businesses . (Sold to Brookfield) . They will be saving 17000 crores in interest cost per year. The huge cash pile which they are getting through stake sale & rights issue will be used by Jio for huge spectrum purchase & aggressive 5g roll out ( auctions may now happen this year end or latest by early next year) Jio may gain substantial portion of premium customers from void & Airtel. Even though Airtel is doing good… Read more »

chetan-Bengaluru
chetan-Bengaluru

Yes Kunal, the lethal cash power that jio generating along with technology inhouse will again throw airtel into dust in few months followed by massive spectrum purchase. CASH IS KING now… I mean look at it, 70% tower fibersation… All sites CA enabled. Maximum number of sites pan India. I mean we have only dreamt about this in past. In comparison look at airtel, they don’t have same infrastructure but they are playing on customer quality which will not remain constant as we have seen in the past. Then airtel will not have any technology difference to play with in… Read more »

saket
saket

JIO has again followed proven track of Reliance( RIL) core DNA. Integrating forward and backward supply chain, also maintaing Arm lengh prices and register heavy profits, Just change in divident rule is because of market forces/policy maker. Running software company for JIO apps and even Core network like OSS and native VOLTE is making JIO very stable and long term profitable company . @chetan,,, What do u mean by white labeling, AS per my understanding JIO is using in house team to manufacure Hardware and Software for Its own network, where comes labeling as South korean. One more interesting thing… Read more »

chetan-Bengaluru
chetan-Bengaluru

@saket, jio is only designing the hardware inhouse. They are not manufacturing it… Manufacturing is not easy in house. Taiwan and Korea is good in all these. All the manufacturer who manufacture for apple, ibm, hp cisco etc also undertake custom contract manufacturing from various other companies who design their own equipment specific to their requirement. You can call it white labelling or self labeling …

Vishal
Vishal

@chetan so that’s why network engineers at jio are mostly under ril pay roll i.e directly working for jio unlike airtel which sources engineers from network vendors like ericson, Nokia for network maintanence ?

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