Mubadala, the Abu Dhabi-based sovereign investor, on Thursday said it will invest Rs 9,093.60 crore in Jio Platforms, the digital arm of Reliance Industries, for a 1.85 percent stake.
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The Mubadala deal values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.
Mubadala’s funding is the latest in a series of investments in Jio Platforms over the last few weeks and the first investment in the firm by a sovereign wealth fund.
Including the investment by Mubadala, Jio Platforms has raised Rs 87,655.35 crore from global investors Facebook, Silver Lake Partners, Vista Equity Partners, General Atlantic and KKR in six weeks.
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, a number of American private equity players have grabbed a share in the digital subsidiary of the Indian conglomerate.
Private equity firm Silver Lake Partners announced Rs 5,655.75 crore investment for 1.15 percent stake early May. It was followed by Vista Equity Partners’ Rs 11,367 crore investment for a 2.32 percent stake.
General Atlantic announced Rs 6,598.38 crore investment for a 1.34 percent stake in Jio Platforms mid-May. And it was followed by KKR, which announced investment worth Rs Rs 11,367 crore for a 2.32 percent stake.
Mubadala manages a US $229 billion portfolio in five continents with interests in multiple sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, pharmaceuticals and medical technology, agribusiness and a global portfolio of financial holdings across all asset classes.
“Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy,” said RIL Chairman Mukesh Ambani in a statement.
The latest deal reaffirms Jio’s continuing attraction among global investors.
“We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India’s digital growth journey,” said Mubadala MD and Group CEO Khaldoon Al Mubarak in the statement.
Interestingly, soon after Facebook's investment, Reliance tied up with Facebook subsidiary WhatsApp in a novel hyperlocal delivery service. Users could place orders through WhatsApp on JioMart, Reliance's grocery shopping platform. The service is currently available in limited locations.
Reliance Industries Ltd., which also owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.