BofA Pegs Jio Platforms’ Valuation At $107 Bn, Sees Robust Growth In 2024

Brokerage BofA has reportedly pegged the valuation of Mukesh Ambani’s Jio Platforms at $107 Bn and is bullish about the company. 

Jio Platforms houses telecom operator Reliance Jio Infocomm and other digital businesses of Reliance Industries Ltd (RIL).

As per a TechCrunch report, BofA said in a note to its clients that it expects Jio Platforms to continue adding subscribers this year while making deeper inroads with its advanced feature phone JioBharat and wireless broadband device JioAirFiber. 

“On enterprise business we see three areas where Jio Platforms could capitalise on: government contracts, SMEs and corporates (by offering VAS),” BofA was quoted as saying by the publication.

It is pertinent to note that the valuation assigned by BofA is 64.6% higher than the $65 Bn valuation at which the company raised $20 Bn from the likes of Meta, Google, and several other technology giants in a series of investments in 2020.

Jio Platforms has been constantly expanding its business since the mega fundraise. The company launched the JioBharat phone in July last year and said during its last reported quarter – Q2 FY24 – that the phone had received ‘substantial market share’ in the non-smartphone segment.

“… Ubiquitous 5G, JioBharat and JioAirFiber are three big growth engines for Jio which would accelerate market share gains and profitability,” Reliance Jio Infocomm chairman Akash Ambani said then. 

Meanwhile, the company’s broadband subscriber base also became robust over the years. It stood at 462.34 Mn at the end of October 2023.

Set up in 2019, Jio Platforms initially comprised RIL’s digital businesses, including Reliance Jio, and key B2B and B2C apps and products such as JioMeet or JioCloud. Over the years, Jio Platforms has expanded across ecommerce, fintech, and OTT services and has started challenging Indian startups in these areas.

RIL plans to come out with a separate initial public offering (IPO) of Jio Platforms. However, no timeline has been decided for it.

Last year, Jio Financial Services also got listed on the bourses as a separate entity, emerging as a potential competition to the likes of Paytm, PhonePe, Zerodha, and Groww. 

Jio Platforms reported a 12% year-on-year (YoY) rise in its consolidated net profit to INR 5,297 Cr in Q2 FY24, while its operating revenue increased 10.7% YoY to INR 26,875 Cr in the quarter.