Reliance Jio Platforms Is Raising $250 Mn From PE Firm L Catterton

Jio Platforms Is Raising $250 Mn From L Catterton

SUMMARY

This investment values Jio Platforms at INR 4.91 Lakh Cr

L Catterton’s investment will translate into a 0.39% equity stake in Jio Platforms

With this, Jio Platforms has raised INR 1.04 Lakh Cr since April 2020

Continuing its massive funding spree in recent months, Reliance Jio Platforms has announced that it is raising INR 1894.50 Cr ($249.8 Mn) from L Catterton, a consumer-focussed private equity firm. This investment values Jio Platforms at an equity value of INR 4.91 Lakh Cr and an enterprise value of INR 5.16 Lakh Cr.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

L Catterton’s investment will translate into a 0.39% equity stake in Jio Platforms on a fully diluted basis. With this investment, Jio Platforms has raised INR 1.04 Lakh Cr from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton.

Founded in 1989, L Catterton makes investment across consumer-focused brands around the world. The company uses its operational expertise, deep sector insights, a global network of resources, and its partnership with LVMH and Groupe Arnault, L Catterton has invested in and helped build brands including Peloton, Vroom, ClassPass, Owndays, FabIndia, and more.

Mukesh Ambani, chairman and managing director of Reliance Industries, said, “I particularly look forward to gaining from L Catterton’s invaluable experience in creating consumer-centric businesses because technology and consumer experience need to work together to propel India to achieving digital leadership.”

Jio Platforms houses Reliance’ digital services like Reliance Jio, Jio Fiber, MyJio, JioTV, JioCinema, Jio Mart JioNews and JioSaavn under one banner.

Michael Chu, global co-CEO of L Catterton, said, “We are strong supporters of fostering growth through product development, enhanced digital capabilities and strategic alliances. We look forward to partnering with Jio, which is uniquely positioned to execute on its vision and mission to transform the country and build a digital society for 1.3 Bn Indians through its unmatched digital and technological capabilities.”

Jio Platforms was also reported to be in talks for an overseas public listing. However, the stock exchange for the listing hasn’t been decided yet. The company is planning to list itself over the next 12 to 24 months, but no final decision has been taken on the timeline and size of the listing.