Jio Bags Yet Another Big Investment from US-Based Company

Reliance Jio
The logo of JIO is seen at the facade of the Jio World Centre, in Navi Mumbai on April 22, 2020. - Facebook has taken a $5.7 billion stake in the Jio digital platforms business of India's richest man Mukesh Ambani, the two sides said on April 22, marking one of the biggest foreign investments in the country. The deal will give the US social media giant a 10 percent stake in Jio Platforms, part of Ambani's Reliance Industries empire. (Photo by INDRANIL MUKHERJEE / AFP)

It seems like a good year for Reliance Industries, as it announced that US-based private equity firm General Atlantic will invest Rs 6,598.38 crore for a 1.34 per cent stake in its Jio Platforms.

This deal marks the fourth major deal for the company with a US-based technology investor within a month. Earlier, Reliance had secured investments from Facebook and private equity companies Silver Lake and Vista Equity Partners. This new deal will value Reliance Industries’ digital unit Jio Platforms at an equity value of Rs 4.91 lakh crore and enterprise value of Rs 5.16 lakh crore, according to a statement released by the giant. However, this deal is still subject to regulatory approvals.

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In a press statement by Mukesh Ambani, chairman and managing director of Reliance Industries, he said, “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.”

This deal is quite in line with Mr Ambani’s plans to make Reliance Industries net debt-free by 2021.