General Atlantic's Jio Platforms deal is a bet on India's digital transformation

Ruben Fields
May 20, 2020

On Sunday, New York-headquartered private equity firm General Atlantic said it would invest $870 million in the Indian telecom operator, a subsidiary of India's most valued firm (Reliance Industries), joining fellow American investors Facebook, Silver Lake, and Vista Equity Partners that have also made sizeable bets on the three-and-a-half-year old Indian firm. At General Atlantic, we think this can be a catalyst for positive change in terms of efficiencies, inclusion and overcoming physical barriers, and as a result, we expect accelerated growth and expanded investment and entrepreneurial activity in many sectors.

RIL said the deal with General Atlantic gives Jio Platforms an enterprise value of ₹5.16 trillion.

Investments by leading global growth investors will help enable Jio to scale its ecosystem towards building a Digital Society in India, said RIL in a release.

Jio Platforms is the umbrella entity of all the digital and internet businesses of Reliance, including mobile apps, broadband connectivity, smart devices, cloud computing, big data analytics, artificial intelligence, internet of things, augmented and mixed reality, and blockchain. On May 8, the US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 11,367 crore. This is a company which has experience in the technology world, but also a number of bets which would be very complementary for the existing ventures in Reliance Jio Platforms.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, "I have known General Atlantic for several decades and greatly admired it for its belief in India's huge growth potential".

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Previously, companies like Uber, Alibaba, ByteDance, Facebook, and Snapchat have also garnered financial backing from General Atlantic; however, its deal with Reliance Jio marks its largest investment ever, the media reported.

Jio is committed to make a digitally inclusive India that will provide vast opportunities to every Indian citizen especially to highly talented youth. Paul, Weiss, Rifkind, Wharton & Garrison and Shardul Amarchand Mangaldas & Co acted as legal counsel to General Atlantic.

"Jio's young team to set, and achieve, even more ambitious goals in our onward march".

The string of investments from know-how giants and personal fairness corporations will go through slashing debt at Reliance Industries, which is managed by Mukesh Ambani.

Two additional organizations are peering toward a portion of Reliance Industries' $65-billion computerized unit Jio Platforms, as per Bloomberg News, setting them up to be a piece of a developing rundown of firms that have as of late put resources into the Mumbai-based organization. In total Jio Platforms has raised $10.1 billion.

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