Jio Platforms gets 8th investment in less than seven weeks; AIDA takes 1.16% stake for Rs 5,683.50 crore

Jio Platforms, the digital subsidiary of Reliance Industries, has received its eighth investment since April. Abu Dhabi Investment Authority is the seventh investor in the platform, which saw investments spiral since Facebook became the first investor way back in April. AIDA has invested Rs 5,683.50 crore in the company for a 1.16 percent stake. With the newest investment, Jio Platforms has raised a total of Rs 97,885.65 crore or equivalent to $12.96 billion.

Jio Platforms gets another investment

Abu Dhabi Investment Authority is joining Facebook, Silver Lake, Vista, General Atlantic, KKR and Mubadala as an investor in Jio Platforms. To recall, Silver Lake invested twice in the technology subsidiary of Reliance Industries. This is the largest continuous fund raising by a company anywhere in the world. Like previous investors, AIDA’s investment comes at an equity valuation of Rs 4.91 lakh crore and enterprise valuation of Rs 5.16 lakh crore.

In the past couple of days alone, we have seen three big investments in Jio Platforms. Mubadala invested Rs 9,093.60 crore for a 1.85 percent stake and it was followed by Silver Lake’s additional investment of Rs 4,546.80 crore. This forms an unprecedented eighth investment in less than seven weeks and Jio Platforms gets its seventh investor. The announcement comes on the back of rumors that Microsoft, Twitter and Saudi Arabia’s Sovereign Wealth Fund are also weighing investment in the technology arm.

The single major driver for Jio Platforms‘ investment spree is Reliance Jio, the largest mobile network in the country with over 388 million subscribers. The investment is also a vote of confidence to Mukesh Ambani’s plan to digitize the nation with a slew of products. Reliance has repeatedly said that the company will leverage Jio’s network technology to build a digital society. It aims to digitize services for consumers, allowing them to shop online and pay online.

With the investment, Reliance Industries aims to reduce its debt and is expected to go debt-free by the end of this year. The company has now truly become an oil to telecom conglomerate and we could see more of these investments in the coming weeks. The real question right now is whether these investments will get extended to Vodafone Idea Ltd and Bharti Airtel as well. India’s telecom market is seeing resurgence and Jio might not be the only beneficiary.


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