NE BUSINESS BUREAU
MUMBAI, MAY 8
US-based private equity firm Vista Equity Partners will buy a 2.32 percent stake in billionaire Mukesh Ambani’s digital unit, Jio Platforms, for Rs 11,367 crore, the company announced on Friday.
“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,” the company said in a statement.
Vista’s investment will translate into a 2.32 percent equity stake on a fully diluted basis, making Vista the largest investor in Jio Platforms behind Reliance Industries and Facebook.
Facebook had bought 9.99 percent stake in Jio Platforms – the firm that houses India’s youngest but biggest telecom firm, for Rs 43,574 crore. That deal was followed by Silver Lake – the world’s largest tech investor — buying 1.15 percent stake in Jio Platforms for Rs 5,665.75 crore.
“Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks,” the statement said.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation tech company that brings together Jio’s leading digital apps, digital ecosystems, and high-speed connectivity platform under one umbrella.
Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.
Vista is a leading global investment firm focused on empowering enterprise software, data, and technology-enabled companies that are reinventing industries and catalyzing change. It has more than USD 57 billion in cumulative capital commitments and its global network of companies collectively represents the 5th largest enterprise software company in the world.
Currently, Vista portfolio companies have a significant presence in India with over 13,000 employees.
Commenting on the transaction with Vista, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said, “I am delighted to welcome Vista, one of the world’s marquee tech investors globally as a valued partner. Like our other partners, Vista also shares with us the same vision of continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. They believe in the transformative power of technology to be the key to an even better future for everyone. In Robert and Brian, whose family hails from Gujarat, I found two outstanding global technology leaders who believe in India and the transformative potential of a Digital Indian Society. We are excited to leverage the professional expertise and multi-level support that Vista has been offering to its investments globally for the benefit of Jio.”
Commenting on the investment, Robert F. Smith, Founder, Chairman, and CEO of Vista, said, “We believe in the potential of the Digital Society that Jio is building for India. Mukesh’s vision as a global pioneer, alongside Jio’s world-class leadership team, has built a platform to scale and advance the data revolution it started. We are thrilled to join Jio Platforms to deliver exponential growth in connectivity across India, providing modern consumer, small business, and enterprise software to fuel the future of one of the world’s fastest-growing digital economies.”
