It’s another week another deal for Reliance Jio seems like Asia’s richest man Mukesh Ambani is on a roll. Jio platforms the telecom and digital unit of Reliance Industries has announced another huge investment today by Vista Equity Partners after the recent deals with Facebook and Silver Lake.
Vista has a track record of investing in cutting-edge technology companies in the early stages. Each of the investments has been profitable in its history of 10 years also. Now, this is the private equity giant’s first sizeable investment in India. Vista Equity Partners which is a US-based private equity firm has picked up a 2.32% stake in Jio platforms for Rs.11,367 crore rupees.
Now with this Vista will become the third-largest investor in Jio after Reliance Industries and Facebook. The premium valuation given by it as also by the other investors indicates that there is significant growth potential in the business in the near future. Vista Equity is an investment firm that actually focuses on enterprise software, data, and technology.
Enabled companies and has investments in say companies like Solera, Tibco, and Infobox as well. Now Vista would also enable Jio to leverage professional expertise. While Jio has established itself as a formidable player in the telecom industry in India and investors have really warmed up to the idea of Jio as a platform company.
Vista believes in the transformative potential of a digital Indian society and Jio’s technological capabilities of doing so. Vista founder Robert F. Smith said that we are thrilled to join Jio platforms to deliver exponential growth in connectivity across India. Facebook Jio partnership well, Facebook acquired a 9.99% stake in Reliance Jio by investing 43,574 crore rupees.
The partnership really focuses on digitizing 60 million MSMEs, 120 million former’s, 30 million small merchants, and millions of enterprises in the informal sector. In addition to that Jio platforms have also entered into a partnership with Whatsapp where in the two companies will really focus on expanding the reach of Jio Mart to small businesses via the messaging platform.
Facebook in return really gets to make in-roads in India which is the second-largest internet market after China. The partnership could also particularly benefit the companies gaming, virtual reality payments, and also video streaming services all of which are yet to make a mark in India.
Jio-Silver Lake deal, well the US-based equity firm Silver Lake has picked up a 1.1% stake for 5,655 crore rupees into your platforms. The investment value Jio platforms which really include digital services like Reliance Jio, My Jio, JioCinéma, and JioNews among others at an enterprise value of 5.15 lakh crore rupees.
Silverlake believes that Jio has extraordinary engineering capabilities to bring the power of low-cost digital services to a mass consumer base and small business population in India. Now the market potential Jio is addressing is also quite enormous. India has the biggest open market for Internet users and a tie of Reliance Jio really offers them the scale of India’s large digital ecosystem and also helps in building one of the world’s fastest-growing digital economies.