Reliance Industries Limited (RIL) and Jio Platforms, have announced an investment of Rs 65.98 billion by General Atlantic. This investment values Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion.
General Atlantic’s investment will translate into a 1.34 per cent equity stake in Jio Platforms on a fully diluted basis. With this investment, Jio Platforms has raised Rs 671.94 billion from leading technology investors including Facebook, Silver Lake, Vista Equity Partners and General Atlantic in less than four weeks.
Commenting on the development, Mukesh Ambani, chairman and managing director, RIL, said, “I am thrilled to welcome General Atlantic, a marquee global investor, as a valued partner. I have known General Atlantic for several decades and greatly admired it for its belief in India’s huge growth potential. General Atlantic shares our vision of a Digital Society for India and strongly believes in the transformative power of digitisation in enriching the lives of 1.3 billion Indians. We are excited to leverage General Atlantic’s proven global expertise and strategic insights across 40 years of technology investing for the benefit of Jio.”
Meanwhile, Bill Ford, chief executive officer (CEO), General Atlantic, said, “As long-term backers of global technology leaders and visionary entrepreneurs, we could not be more excited about investing in Jio. We share Mukesh’s conviction that digital connectivity has the potential to significantly accelerate the Indian economy and drive growth across the country. General Atlantic has a long track record working alongside founders to scale disruptive businesses, as Jio is doing at the forefront of the digital revolution in India.”
Further, Akash Ambani, director, Reliance Jio, said “We are delighted that a renowned global investor like General Atlantic is partnering with us in our journey to digitally empower India and Indians. Jio is committed to make a digitally inclusive India that will provide immense opportunities to every Indian citizen especially to our highly talented youth. General Atlantic’s endorsement and partnership energises Jio’s young team to set, and achieve, even more ambitious goals in our onward march.”
Meanwhile, Sandeep Naik, managing director and head of India and Southeast Asia at General Atlantic, added, “General Atlantic has nearly two decades of experience of investing in India, and specifically in founder-led businesses that are based upon principles of enablement, inclusion and progress. In just three and a half years, Jio has had a transformational impact in democratising data and digital services, propelling India to be positioned as a leading global digital economy.”
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB and Partners, and Davis Polk and Wardwell acted as legal counsel. Paul, Weiss, Rifkind, Wharton and Garrison and Shardul Amarchand Mangaldas and Co. acted as legal counsel to General Atlantic.