Reliance Jio To Raise INR 11K Cr From KKR

Reliance Jio Platforms, on May 22 (Friday), announced that it has raised INR 11,367 Cr funding from American global investment firm KKR, in exchange for 2.32% equity stake on a fully diluted basis.

This transaction values Jio Platforms at an equity value of INR 4.91 Lakh Cr and an enterprise value of INR 5.16 Lakh Cr. Over the last month, the company has raised INR 78,562 Cr from technology investors like Facebook, Silver Lake, Vista, and General Atlantic, along with KKR.

Facebook acquired a 9.99% stake in Jio Platforms after investing INR 43,574 Cr ($5.7 Bn) in the company, whereas Vista Equity Partners acquired a 2.32% stake for INR 11,367 Cr ($1.5 Bn). Meanwhile, Silver Lake and General Atlantic have invested INR 5,655 Cr ($746 Mn) and  INR 6,600 Cr respectively, in the company.

Through this series of investments, Reliance wants to facilitate wide-scale digital adoption in India in the consumer and B2B space. The company’s chairperson and managing director, Mukesh Ambani, believes that comprehensive digitisation is a vital part of revitalising the Indian economy and no individual should be devoid of the “tremendous” new opportunities, employment, and businesses arising out of India’s 360-degree digital transformation.

Jio Platforms is an umbrella company that manages Reliance’s digital services like Reliance Jio, Jio Fiber, MyJio, JioTV, JioCinema, Jio Mart JioNews and JioSaavn under one banner. Currently, Reliance Industries Limited (RIL) is the largest stakeholder in Jio Platforms, followed by Facebook. With the latest investment, KKR and Vista Equity Partner will be the third-largest stakeholders in the company.

One of the world’s largest private equity firms, KKR, which was founded in 1976, has previously invested close to $30 Bn across 20 companies across the technology, media and telecom sector through its private equity and technology growth funds. Its portfolio includes American enterprise software company BMC Software, TikTok’s parent company ByteDance and on-demand multi-service platform GoJek. KKR is investing in Reliance Jio through its Asia private equity and growth technology funds.

Talking about the investment, Ambani said “KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio.”

Meanwhile, Henry Kravis, cofounder and co-CEO of KKR, added, “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide.”

“Jio Platforms is a true homegrown next-generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution. We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific,” Kravis said.