TPG to invest Rs 4547 cr in Jio Platforms for 0.9% stake; ninth deal by Jio in less than 2 months

TPG’s investment has been done at a similar valuation as some of the recent private equity investments, giving Jio Platforms an equity valuation of Rs 4.91 lakh crore and an enterprise valuation of Rs 5.16 lakh crore.

TPG is making the investment from its TPG Capital Asia, TPG Growth, and TPG Tech Adjacencies (TTAD) funds.

This series of fund raising by Jio Platforms comes in the midst of a global lockdown, underscoring India’s digital potential and the robustness of Jio’s business strategy.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “Today, I am happy to welcome TPG as valued investors in our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem. We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better.”

Jim Coulter, Co-CEO TPG, said, “We are excited to partner Reliance to invest in Jio. As an investor in growth, change, and innovation for over 25 years – and with a longstanding presence in India -- we are excited to play an early role in Jio's journey as they continue to transform and advance India's digital economy. Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come.”

Facebook was the first to put its finger in the Jio Platforms pie with a Rs 43,574 crore ($5.7 billion) investment for a 9.99 percent stake. The investment made Facebook the largest minority shareholder in Jio Platforms and valued the RIL technology arm at Rs 4.62 lakh crore ($66 billion) pre-money enterprise value.

Subsequently, many other private equity players too grabbed a slice of the digital subsidiary of the Indian conglomerate.

 

Reliance Industries Ltd., which also owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)