The richest man in India, Mukesh Ambani, could also be a magician. At the height of the global economic financial crisis, Jio Platforms, the digital subsidiary of Reliance Industries, led by Ambani, is in the midst of an unprecedented investment-attracting frenzy. The Saudi Arabian Public Investment Fund, a major global sovereign wealth fund, has announced that it will invest €1.5 billion (Rs 11,367 crore) in a 2.32% stake in Jio Platforms. This 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. Thanks to this investment, Jio Platforms raised €15,2 billion (Rs 115,693.95 crore) from top ten global investors including Facebook, Silver Lake (1 & 2), KKR, Vista Equity Partners, General Atlantic, Mubadala, Authority of Investments of Abu Dhabi, TPG and L Catterton in the last nine weeks. Since April 2020. He sold a total of 24.7% of the capital of his business.
Two players synced
Jio Platforms, with more than 388 million subscribers, has made significant investments in its digital ecosystem, using advanced technologies covering broadband connectivity, smart devices, cloud and advanced computing, Big Data, artificial intelligence, Internet of Things. things, augmented and mixed reality and blockchain. The PIF is Saudi Arabia's sovereign wealth fund and, as part of its mandate to diversify its economy, has made its largest investment in the Indian economy to date. This investment is in line with PIF's strategy and mandate to invest in sectors and companies that generate long-term business returns to stimulate the Saudi economy. Mukesh Ambani, Chairman and CEO of Reliance Industries, said: “I greatly admire the pivotal role PIF has played in the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner of the Jio platforms and look forward to your continued support and advice as we take ambitious steps to accelerate India's digital transformation to enrich and 'empower the lives of 1.3 billion Indians. " Yasir Al-Rumayyan, Governor of PIF, said: “We are delighted to invest in an innovative company that is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to tap into this growth. This investment will also enable us to generate significant long-term business returns for the benefit of the Saudi economy."Investments in context
The question among most analysts is what does so much investment in Jio platforms mean? On one level, it's just a simple translation of Mukesh Ambani's stated goal of freeing Reliance Industries from its debt by March of next year. But at first glance, the goal could be reached that same year. The money raised so far should go a long way towards reducing Reliance's €21bn debt. To put into perspective the aggressive path that Jio Platforms is proposing, it has so far attracted €15,2 billion in nine weeks, while Indian startups have raised €14.5 billion last year. Obviously, this is amazing. From another point of view, this also reflects the appeal of Jio Platforms, and by extension the Indian market, to these huge global fans. The size of the Indian market, 1.300 billion people, is a great attraction for global investors. And while today's government doesn't cover itself with great economic glory, India still stands out as an attractive investment destination for global companies. Especially technologically, India holds promise as internet penetration is improving by the day, which promises many of these tech investors the chance to progress further. Jio is also the trigger for other companies in India to look for big investors from other places. Bharti Airtel is said to be in talks with Amazon and Vodafone Idea is said to be negotiating with Google, although the company has denied the latter.Saudi Arabia Sovereign Fund PIF to Invest Rs 11.367 Cr in Jio Platforms @reliancejio pic.twitter.com/z4AbJeEJdZJune 18, 2020