US-based private equity firm Vista Equity Partners will pick up a 2.32 percent stake in Jio Platforms for Rs 11,367 crore at an equity value of Rs 4.91 lakh crore.
Vista runs the world’s largest exclusively tech-focused fund.
This is the third high-profile investment in the Reliance Industries Ltd (RIL) unit in as many weeks.
With this, Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks.
Commenting on the transaction with Vista, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said, “I am delighted to welcome Vista, one of the world’s marquee tech investors globally as a valued partner. Like our other partners, Vista also shares with us the same vision of continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians.
“They believe in the transformative power of technology to be the key to an even better future for everyone. In Robert and Brian, whose family hails from Gujarat, I found two outstanding global technology leaders who believe in India and the transformative potential of a digital Indian society. We are excited to leverage the professional expertise and multi-level support that Vista has been offering to its investments globally for the benefit of Jio.”
Vista’s investment is at a 12.5 percent premium over the Facebook deal announced in April. The investment by Silver Lake Partners in Jio was also at a similar premium to the Facebook deal.
The latest round of investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. The price is the same as the one paid by US private equity firm Silver Lake for a 1.15 percent stake in Jio Platforms a few days back.
Vista has a track record of investing in cutting edge tech companies in their early stage. Each of its investments have been profitable in its history of 10 years. This is Vista’s first sizable investment in India.
Vista’s investment showcases Jio as the next-generation software and platform company. This also is an endorsement of Jio’s tech capabilities and the potential of the business model even in this COVID-19 world and beyond.