Jio-TPG deal: TPG joins rush of investors in Jio Platforms as RIL unit’s total fundraising races past Rs 1 lakh crore

TPG, an investor in companies such as Airbnb, Uber and Spotify, will invest Rs 4,546.80 crore for a 0.93 percent stake in Jio Platforms, marking a historic ninth deal in seven weeks and taking the combined fundraising in the Reliance Industries unit well past Rs 1 lakh crore.

The rush of deals in Jio Platforms, which runs movie, news and music apps as well as the telecom enterprise Jio Infocomm, marks the largest uninterrupted fundraising by a company anywhere in the world. RIL, the oil-to-retail-to-telecom conglomerate, has now sold 21.99 percent stake in Jio and raised Rs 102,432.15 crore from some of the world’s leading technology investors.

Rush of deals

All the deals were concluded amid a global lockdown, a testament to India’s huge digital potential and a strong endorsement of Jio’s formidable strategy, tech capabilities, disruptive business model and secular long-term growth potential.

TPG’s investment at an equity valuation of Rs 4.91 lakh crore and an enterprise valuation of Rs  5.16 lakh crore follows the purchase of 1.16 percent stake by Abu Dhabi Investment Authority (ADIA) for Rs 5,683.5 crore on June 7.

The series of investments in Jio was led by a 9.99 percent stake sale to Facebook Inc for Rs 43,574 crore on April 22.

Also Read: Facebook buys 9.9% stake in Reliance Jio for Rs 43,574 crore in largest tech FDI

Since then, General Atlantic, Silver Lake (twice), Vista Equity Partners, KKR, Mubadala Investment Company and ADIA have spent money on Jio.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said on the deal, “Today, I am happy to welcome TPG as valued investors in our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem. We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better.”

Jim Coulter, Co-CEO TPG, said, “We are excited to partner Reliance to invest in Jio. As an investor in growth, change, and innovation for over 25 years – and with a longstanding presence in India -- we are excited to play an early role in Jio's journey as they continue to transform and advance India's digital economy. Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come.”

Jio Platforms is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with nearly 400 million subscribers.

Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.

TPG, a leading global alternative asset firm founded in 1992, manages assets worth more than $119 billion across a wide range of classes such as private equity, growth equity, real estate, credit and public equity, and runs offices in more than 16 countries.

In TPG’s more than 25-year history, it has built an ecosystem made up of hundreds of portfolio companies and a value-added network of professionals, executives and advisors around the world. By offering institutional support and global resources, TPG enables these companies to reach their full potential and unlock greater possibilities.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.