Seventh Investor in 7 Weeks: Jio Platforms Raises € 750 Million from Adia

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• Seventh Investor in 7 Weeks: Jio Platforms Raises € 750 Million from Adia

Continuing its almost improbable course, Reliance Industries digital subsidiary Jio Platforms raised $750 million (Rs 5 crore) on Sunday from the Abu Dhabi Investment Authority (ADIA), its seventh major investor in as many weeks. Analysts are stunned by the pace of investment flowing into Jio Platforms, especially during the height of the global financial crisis. Jio Platforms has now nabbed almost €683.50 billion from seven investors, including social media giant Facebook, by selling more than 13% of the equity. ADIA, one of the largest investors in the world, is the third deal that Jio Platforms has concluded this week. Jio Platforms had previously secured €20 billion from another Abu Dhabi-based sovereign Mubadala company. Also, late last Friday, the Silver Lake stock company injected an additional €1.2 million to increase its stake in Jio to 600%.

(Image credit: Jio platforms)

ADIA Indian Gambit

ADIA's investment values ​​the Jio platforms at a net worth of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. ADIA's investment will result in a 1,16% stake in Jio Platforms on a fully diluted basis. Established in 1976, ADIA is a globally diversified investment institution that invests funds on behalf of the Abu Dhabi government as part of a strategy focused on long-term value creation. ADIA manages a global investment portfolio diversified across more than two dozen asset classes and subcategories. Hamad Shahwan Aldhaheri, Executive Director of ADIA's Private Equity Department, said: "Jio Platforms is at the forefront of the digital revolution in India, ready to take advantage of key socio-economic developments and the transformative effects of technology along the way." whose people live and work." In a press release, he added: "The rapid growth of the company, which has established itself as a market leader in just four years, has been built on strong experience in strategic execution. Our investment in Jio is a further demonstration of ADIA's ability to draw on deep regional and sector expertise to invest globally in market-leading companies and alongside proven partners." With this investment, Jio Platforms raised almost €13 billion (Rs 97,885.65 crore) from top global investors including Facebook, Silver Lake, Vista, General Atlantic and KKR, Mubadala, Silver Lake again, and now Adia in seven weeks.

At this rate, Mukesh Ambani will become a minority shareholder. Jio Platforms raises Rs 5.483,50 crore from the Abu Dhabi Investment Authority https://t.co/mZaCJPYlXB7 June 2020

Jio's terrifying beat

Jio Platforms, with more than 388 million subscribers in three and a half years of existence, blazes a difficult path that its competitors find impossible to match. Jio has made significant investments in its digital ecosystem, using advanced technologies covering broadband connectivity, smart devices, advanced and cloud computing, big data analytics, artificial intelligence, l 'Internet of things, augmented and mixed reality and blockchain. Commenting on the latest investor, Mukesh Ambani, Chairman and CEO of Reliance Industries, said: "I am delighted that ADIA, with its track record of more than four decades of successful long-term investments around the world, is joining forces with Jio Platforms in its mission to lead India to digital leadership and create opportunities for inclusive growth. This investment is a strong endorsement of our strategy and India's potential." Share sales are part of Jio Platforms' parent company, Reliance Industries (RIL), which is expected to be debt free in March. The target will most likely be reached in December as Reliance has already secured Rs53,124 crore from a rights offer which closed on June 4. (You can read all about Jio Platforms and its various investors in our full coverage here.)