General Atlantic's $879 mil. investment raises funding for Jio Platforms to $8 bil.

18, May. 2020

Photo by cottonbro from Pexels
Photo by cottonbro from Pexels

NEW DELHI, NNA - Global growth equity firm General Atlantic is investing 65.98 billion rupees ($879 million) for a 1.34 percent stake in India’s leading digital services firm, Jio Platforms Ltd.

With this investment, Jio Platforms, a wholly-owned subsidiary of the country’s oil-to-telecom behemoth Reliance Industries Ltd. (RIL), has raised a total of 671.95 billion rupees ($8 billion) from marquee investors including Facebook, Silver Lake and Vista Equity Partners in less than four weeks.

The latest investment will help the digital firm further in its mission of building a digital society in the South Asian country, said RIL and Jio Platforms in a media statement on Sunday.

The investment by General Atlantic has valued the digital firm at an equity value of 4.91 trillion rupees and an enterprise value of 5.16 trillion rupees, they said.

Jio Platforms has become the darling of global investors in the past few weeks. It received a $5.7 billion investment from Facebook, $750 million from Silver Lake and $1.5 billion from Vista Equity Partners.

Mukesh Ambani, chairman and managing director of Reliance Industries, said, “I have known General Atlantic for several decades and greatly admired it for its belief in India’s 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.”

In the same media statement, Bill Ford, CEO of General Atlantic, said, “We share Mukesh’s conviction that digital connectivity has the potential to significantly accelerate the Indian economy and drive growth across the country. General Atlantic has a long track record working alongside founders to scale disruptive businesses, as Jio is doing at the forefront of the digital revolution in India.”

General Atlantic, which has had approximately $34 billion in assets under management as of March 31, has invested in companies such as Airbnb Inc., Alibaba Group Holding Ltd., Ant Financial Services Group, ByteDance Ltd., Facebook, Slack Technologies Inc., Snap Inc. (Snapchat) and Uber Technologies Inc.

Jio Platforms has created an increasingly broad and appealing digital eco-system encompassing network, devices, applications and content, platforms, service experience and affordable tariffs for users. Apart from revolutionizing the Indian telecom market by making voice calls free for Jio customers across India to any network, it has also made data affordable.

One major game plan is its partnership with Facebook to provide users with the convenience of buying goods and services on the popular WhatsApp messaging and Facebook Messenger apps.