Mukesh Ambanis Reliance Jio Platforms has agreed to sell 2.32% of the shares to the US company KKR. This is the fifth major deal the leading Indian telecommunications operator has made in just as many weeks.
On Friday, KKR Announced to Invest $ 1.5 Billion in India's Leading Telecommunications Operator, a Subsidiary of India's Most Valuable Company (Reliance) Industries), along with American investors Facebook, Silver Lake, Vista Equity Partners and General Atlantic, who have placed similar bets on Jio Platforms.
Reliance Jio appreciates KKR's investment, which has issued checks to around 20 technology companies, including ByteDance and GoJek, over the past four decades Platforms for $ 65 billion.
Today's announcement further demonstrates the attractiveness of Jio Platforms, which raised $ 10.35 billion last month by selling around 17% of its stake, to foreign investors looking for part of the world's second largest Internet market.
Ambani, chairman and managing director of oil telecommunications giant Reliance Industries The company has spent more than $ 30 billion on the construction of Jio platforms. The company was looking forward to "leveraging KKR's global platform, industry knowledge and operational expertise to further expand Jio."
In recent years, India has become one of the largest global battlegrounds for Silicon Valley and Chinese companies that want to attract the country's 1.3 billion people, most of whom remain without a smartphone or internet connection.
Amazon, Google, Facebook, Microsoft, Xiaomi and the TikTok parent company ByteDance are already India's most important overseas markets. Almost half a billion Indians went online for the first time in the past decade, largely thanks to Reliance Jio, which has amassed over 388 million subscribers.
Reliance Jio was launched in the second half of 2016 and upgraded the Indian telecommunications industry with affordable data plans and free voice calls. Established companies like Airtel and Vodafone had to revise their prices considerably to support customers and many to consolidate and leave the market.
Jio Platforms, a subsidiary of Reliance Industries, operates the telecommunications company Jio Infocomm, which has become the leading telecommunications operator in India.
Reliance Jio Platforms also owns a variety of digital apps and services, including the music streaming service JioSaavn (which is said to be publicly available), the on-demand live TV and payment service, as well as smartphones and the broadband business.
“Few companies have the potential to change a country's digital ecosystem like Jio Platforms in India and possibly worldwide. Jio Platforms is a true next-generation indigenous technology leader in India, unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution, ”said Henry Kravis, co-founder and co-director of KKR in one Opinion.
"We are investing behind the impressive momentum, world-class innovation and strong leadership team at Jio Platforms and see this groundbreaking investment as a strong indicator of KKR's commitment to supporting leading technology companies in India and Asia Pacific," he added. This is the largest single investment so far (measured by equity) from KKR's Asian private equity business.
The new capital was also expected to help Ambani, India's richest man, further consolidate its investor engagement last year when it pledged to reduce Reliance's net debt from approximately $ 21 billion to zero in early 2021, partly because of the Investments it made for the construction of Jio platforms. The core business – oil refining and petrochemicals – was hard hit by the outbreak of the corona virus. Net income for the quarter ended March 31 declined 37%.
In the company's call for profit last month, Ambani said that several companies had expressed interest in buying shares in Jio Platforms as part of the contract with Facebook. The recent investments also pave the way for Jio's IPO, which could take place within five years.