As speculated through media reports, global alternative asset investor TPG will invest INR 4,546.80 Cr ($599.67 Mn) in Jio Platforms at an equity value of INR 4.91 Lakh Cr and an enterprise value of INR 5.16 Lakh Cr. Confirming the investment in a press statement, Reliance said that the investment will translate into a 0.93% equity stake in Jio Platforms on a fully diluted basis for TPG.
TPG is making the investment from its TPG Capital Asia, TPG Growth, and TPG Tech Adjacencies (TTAD) funds. Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Shardul Amarchand Mangaldas & Co. acted as legal counsel for TPG.
With this investment, Jio Platforms has raised INR 1.02 Lakh Cr from global technology investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, and TPG.
The development comes after last week reports of TPG Capital has been in talks with Reliance Jio for the past few weeks and is expected to invest close to $1 Bn to $1.2 Bn.
Founded in 1992, TPG specialises in growth and middle-market buyout opportunities. The private equity group has more than $70 Bn under management. The company has invested in more than 145 startups and has got close to 53 exits. TPG’s portfolio includes Uber, hospitality startup AirBnB and online survey tool SurveyMonkey.
In India, the firm has invested in Bengaluru-based home design and decor service provider Livspace, Mumbai-based beauty marketplace Nykaa, Delhi-based eyewear startup Lenskart and Mumbai-based movie and events ticketing platform BookMyShow.
Jim Coulter, Co-CEO TPG, said, “Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come.”
In addition to its already lengthy list of investors, Reliance Jio could also raise funds from Saudi Arabia Public Investment Fund, Google and Microsoft. Reports last month said Saudi Arabia’s $320 Bn sovereign wealth fund is exploring a potential investment in Reliance Industries Ltd.’s digital unit, Reliance Jio. The Public Investment Fund is said to be considering purchasing a minority stake in Jio Platforms.
Google and Microsoft are also slugging it out for a 6% stake in the Reliance Industries’ digital venture Jio Platforms, which would be valued at well over INR 30K Cr. Given that Jio Platforms has already given up over 20% of its business in exchange for INR 97,885.65 Cr. The report also adds that Google was in talks with Reliance Jio, but lost out to Facebook in closing the deal.
The company has raised capital from leading investors such as Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and Abu Dhabi Investment Authority (ADIA), L Catterton in less than seven weeks. Jio Platforms had raised its last funding from ADIA at an equity value of INR 4.91 Lakh Cr and an enterprise value of INR 5.16 Lakh Cr.