Jio Platforms raises Rs 4,546.80 crore from TPG

Rajesh Kurup | | Updated on: Jun 14, 2020

Ninth fund raising since April 22 totalling to Rs 102,432.45 crore from Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA and now TPG

In its ninth fund-raising in seven weeks, Jio Platforms, a subsidiary of Asia's richest man Mukesh Ambani-controlled Reliance Industries Ltd (RIL), has raised Rs 4,546.80 crore from US-based TPG Capital.

The fund-raising is in exchange of a 0.93 per cent stake in Jio Platforms on a fully-diluted basis. The investment is at an equity value of Rs 4.91-lakh crore and an enterprise value of Rs 5.16 lakh-crore, RIL said in a statement.

With this investment, Jio Platforms has raised Rs 102,432.45 crore from leading global technology investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA and now TPG since April 22, 2020.

“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,” Mukesh Ambani, Chairman and Managing Director at RIL said.

Morgan Stanley acted as financial advisor to RIL and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Shardul Amarchand Mangaldas & Co. acted as legal counsel for TPG.

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,” he added.

TPG is making the investment from its TPG Capital Asia, TPG Growth and TPG Tech Adjacencies (TTAD) funds. Founded in 1992, TPG is a global alternative asset firm with more than $119 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate, credit and public equity, and offices in more than 16 countries.

With plans to raise funds totalling Rs 1.62-lakh crore by December, RIL will emerge net-debt free by the end of this calendar year, much ahead of its own earlier estimates of debt-free by March 2021. READ THE STORY: Reliance Industries to be debt-free by year-end

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Published on June 13, 2020
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