Jio Platforms continues to expand its horizon: Mubadala will invest € 1.2 billion

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• Jio Platforms continues to expand its horizon: Mubadala will invest € 1.2 billion

As had been widely speculated in previous reports, Abu Dhabi-based sovereign investor Mubadala Investment Company (Mubadala) will invest €1.2 billion (Rs 9.093.60 crore) in the leading digital services platform. from India, Jio Platforms, for a net worth of 4.91 lakh crore and an enterprise value of ₹5.16 lakh crore. Mubadala's investment will result in a 1.85% stake in Jio Platforms on a fully diluted basis. Thanks to this investment, Jio Platforms raised €11,6 billion (Rs 87,655.35 crore) from top global tech and growth investors including Facebook, Silver Lake, Vista, General Atlantic and KKR, and now Mubadala, in less six-week market belief is that Reliance has targeted the rise from Rs 85,000 to Rs 90,000 crore in share sales in Jio Platforms. Furthermore, the Abu Dhabi Investment Authority and the Saudi Arabian Public Investment Fund are also interested in investing in the Jio platforms. (You can read all about Jio Platforms and its various investors in our full coverage here.)

Mubadala's investment in Abu Dhabi to invest €1.2 billion in Jio platforms. India's richest man attracts another big investor seeking a piece of India's digital economy. Joined Facebook, Silver Lake, Vista, General Atlantic. https://t.co/6f23GSKgZfJune 5, 2020 Jio Platforms, a wholly owned subsidiary of Reliance Industries, has more than 388 million subscribers. Jio Platforms has made significant investments in its digital ecosystem, using cutting-edge technologies covering broadband connectivity, smart devices, cloud and advanced computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain. The recent deals highlight the potential for Jio Platforms, which hosts movie streaming, music apps and telecommunications company Jio Infocomm, to become a dominant player in the global digital economy.

Transforming India's digital space

Mukesh Ambani, Chairman and CEO of Reliance Industries, said: “I am delighted that Mubadala, one of the most astute and transformational global growth investors, has chosen to partner with us. I have personally seen the impact of Mubadala's work on the diversification and global connection of the UAE's knowledge economy. We look forward to leveraging Mubadala's experience and knowledge to support growth pathways around the world. Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: "We are committed to investing in high-growth companies that pioneer technology to meet critical challenges and open up new ones. We have seen how Jio has already transformed the communications and connectivity in India, and as an investor and partner, we are committed to supporting India's digital growth journey. With the network of investors and Jio partners, we believe that the platform company will continue to develop the digital economy."

(Image credit: Jio)

Mukesh's dream

According to a press release, Mubadala is investing and partnering to advance Abu Dhabi's globally integrated and diverse economy in sectors that drive global growth and address critical challenges. An important aspect of this mandate is transformative investments in information and communications technologies including cognitive computing, ICT infrastructure, telecommunications, and satellite operations. These significant investments that Jio Platforms has attracted are seen as a precursor to placing it on a global platform like the Nasdaq in two years. Mukesh Ambani has always talked about turning the Jio platforms into a digital entity along the lines of Alphabet and Tencent.