General Atlantic to invest in Jio platforms, ₹6,600 crores for 1.34% stake

Mukesh Ambani said: “I am thrilled to welcome General Atlantic, a marquee global investor, as a valued partner. I have known General Atlantic for several decades and greatly admired it for its belief in India’s huge growth potential. General Atlantic shares our vision of a Digital Society for India and strongly believes in the transformative power of digitization in enriching the lives of 1.3 billion Indians. We are excited to leverage General Atlantic’s proven global expertise and strategic insights across 40 years of technology investing for the benefit of Jio.”

General Atlantic, a US investment firm, will be investing ₹6,600 crores in Jio Platforms for a 1.34% stake in the telecom segment of Reliance Industries, the company announced in a statement.

General Atlantic had in the past helped fund Airbnb Inc. and Uber Technologies Inc.,

“This investment marks Jio Platforms at an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore,” stated Jio Platforms. This investment remains to reaffirm Jio as a next-generation software product and platform company, the company said in a statement.

Bill Ford, Chief Executive Officer of General Atlantic, stated: “As long-term backers of global technology leaders and visionary entrepreneurs, we could not be more enthusiastic about investing in Jio. We share Mukesh’s conviction that digital connectivity has the potential to significantly stimulate the Indian economy and drive an increase across the country. General Atlantic has a long track record working alongside founders to scale disruptive businesses, as Jio is performing at the forefront of the digital revolution in India.”

Morgan Stanley served as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel. Paul, Weiss, Rifkind, Wharton & Garrison, and Shardul Amarchand Mangaldas & Co. served as legal counsel to General Atlantic.

The new investment into Jio Platforms will continue to the $8 billion deal run that RIL chairman Mukesh Ambani has sealed in recent weeks. Facebook Inc. in April admitted to paying $5.7 billion for a 10% stake in the digital unit, while Silver Lake Partners and Vista Equity Partners last week stated they would invest about $2.25 billion in total.

Akash Ambani, Director of Reliance Jio, stated, “We are delighted that a renowned global investor like General Atlantic is partnering with us in our journey to empower India and Indians digitally. Jio is committed to making a digitally inclusive India that will provide immense opportunities to every Indian citizen, especially to our highly talented youth. General Atlantic’s endorsement and partnership energizes Jio’s young team to set, and achieve, even more, ambitious goals in our onward march.”

Investors are speculating on Jio’s access to India’s colossal customer market, and its potential to move up traditional industries in the country — from retail to education and payments — with its technology.

India is the only significant open Internet market where foreign technology giants such as Amazon.com.Inc., Walmart Inc., and Google’s parent Alphabet Inc. can compete for market share.

The string of investments from technology giants and private equity firms will go via slashing debt at Reliance Industries, which is managed by Mukesh Ambani. The outside money also benefits set a valuation for Jio, which until recently has been primarily owned by the billionaire’s conglomerate.

The deals, along with its plan to sell $7 billion in additional shares, will help Reliance meet its target of eliminating $21.4 billion of net debt by the end of the year.

Saudi Arabia’s Public Investment Fund (PIF) is also thinking of buying a minority stake in Jio, Bloomberg, stated in a news report a few days ago.