Reliance Jio has announced that General Atlantic, a leading growth equity firm, will invest in Jio Platforms. The company has said that General Atlantic will buy 1.34 per cent equity stake in Jio Platforms on a fully diluted basis.
The firm will buy the stakes at Rs 6,598.38 crore. The company has revealed that investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. General Atlantic has investments in multiple global technology companies including Airbnb, Alibaba, Ant Financial, Box, ByteDance, Facebook, Slack, Snapchat, Uber and more. As usual, the transaction is subject to regulatory and other customary approvals.
“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 growth potential. General Atlantic shares our vision of a Digital Society for India and strongly believes in the transformative power of digitization 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,” said, Mukesh Ambani, Chairman and Managing Director of Reliance Industries.
Previously, US-based Vista Equity Partners Ltd has announced an investment of Rs 11,367 crore in Reliance Jio Platforms. The investment values Jio Platforms at an equity value of Rs 4.91 lakh crores and an enterprise value of Rs 5.16 lakh crores. Vista Equity Partners’ have more than $57 billion in capital commitments across various sectors and it was founded in the year 2000.
Facebook acquired a 9.9 per cent stake in Jio Platforms for Rs 43,574 crore. This makes Facebook Jio Platform largest minority shareholder and it is said be to the largest investment for a minority stake by a technology company.
The second investment came from Silver Lake Partners that invested in the company for Rs 5,655 crore. The company has revealed that the investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore and represents a 12.5 per cent premium to the equity valuation of the Facebook investment announced on April 22, 2020.