Reliance Jio To Raise INR 11K Cr Funding From KKR

KKR to invest $1.5 billion in Reliance Industries' digital unit

KKR To Invest $1.5B In India's Jio Platforms, Joins Facebook, Three Other US Firms As Stakeholders

While global giants including Amazon.com Inc and Walmart Inc have also made big bets on growth in India's consumer markets, the companies have faced challenges in scaling their models online in India, where restrictions protect small retailers.

New York-headquartered KKR's purchase of a 2.32 per cent stake pegs Jio Platforms' equity value at roughly $65bn, making it India's second most valuable standalone tech firm after IT services company Tata Consultancy Services.

KKR said its investment in Jio is it's largest in Asia and that Ambani's goals played a big role in a quick decision.

So far the company has sold 17.12 per cent, but if it sells up to 20 per cent, it can raise just under Rs 92,000 crore.

The investment values Jio Platforms at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore, the same implied in the recent deals with Silver Lake, Vista Equity, and General Atlantic.

Jio, which plans to list on the stock exchanges in a few years, offers global investors an attractive opportunity in the Indian market where rapid digitisation is expected to take place post-Covid, said RIL. Combined, Jio platforms have received ₹78,562 crore investments from these companies.

Within days of that deal, Silver Lake - the world's largest tech investor - bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore.

In the company's earnings call last month, Ambani said several firms had expressed interest in buying stakes in Jio Platforms in the wake of the deal with Facebook.

The deals highlight Jio Platforms' potential to become the dominant player in India's digital economy. The private equity fund will pay 113.7 billion rupees for a 2.3% stake in Jio.

According to the latest investor, Jio Platforms is a true homegrown next-generation technology leader in India that has the ability to deliver technology solutions and services to a country that is experiencing a digital revolution.

Till date the firm has invested over $30 billion (total enterprise value) in tech companies, and now the firm's technology portfolio has more than 20 companies across the Technology, Media and Telecom sectors.

All the transactions are now underway and subject to regulatory and other approvals. It has invested in India since 2006.

And, that is not it. Jio Platforms also holds Reliance's home broadband business Jio Fiber, feature phone business, music streaming service JioSaavn, on-demand live television service, and a payments service, among other things.

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