Reliance Industries Limited, today announced an investment of Rs 1894.50 crore by L Catterton, one of the world’s largest consumer focused private equity firms. This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. L Catterton’s investment will translate into a 0.39% equity stake in Jio Platforms on a fully diluted basis. Besides L Catteron, TPG also invested Rs 4,456.8 crore in Jio Platforms acquiring a total of 0.39% stake. With this new investment,s Jio Platforms has raised Rs 104,326.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, and ADIA since April 22, 2020.
These Investments Will Go Through Regulatory Approvals
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.
Michael Chu, Global Co-CEO of L Catterton, said, “Over our more than 30 year history, we have established a track record of building many of the most important brands across all consumer categories and geographies, from retailers, omni-channel and digitally native brands. We are strong supporters of fostering growth through product development, enhanced digital capabilities and strategic alliances. We look forward to partnering with Jio, which is uniquely positioned to execute on its vision and mission to transform the country and build a digital society for 1.3 billion Indians through its unmatched digital and technological capabilities.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am delighted to welcome L Catterton as a partner in our journey to unleash the power of digital for India while providing a consumer experience that is among the best in the world. I particularly look forward to gaining from L Catterton’s invaluable experience in creating consumer-centric businesses because technology and consumer experience need to work together to propel India to achieving digital leadership.”
We have recently reported that the Facebook deal with Reliance Jio is now pushing towards CCI approval. Similarly, all these investments will go through regulatory approvals in the coming months.