Just as was widely speculated in previous reports, the Abhu Dhabi-based sovereign investor Mubadala Investment Company (Mubadala) will invest $1.2 billion (Rs 9093.60 crore) in India’s leading digital services platform, Jio Platforms, at an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore.
Mubadala’s investment will translate into a 1.85% equity stake in Jio Platforms on a fully diluted basis.
With this investment, Jio Platforms has raised $ 11.6 billion (Rs 87,655.35 crore) from leading global technology and growth investors including Facebook, Silver Lake, Vista, General Atlantic and KKR , and now Mubadala, in less than six weeks. The market belief is that Reliance has targeted raising Rs 85,000-Rs 90,000 crore from stake sales in Jio Platforms.
What more, Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund also look keen to invest in Jio Platforms.
(You can read everything about Jio Platforms and its various investors in our comprehensive coverage here).
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Abu Dhabi’s Mubadala Investment to Invest $1.2B in Jio Platforms. India’s richest man lures another big investor seeking a piece of India’s digital economy. Joins 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 across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.
The recent deals highlight the potential of Jio Platforms, which houses movie streaming, music apps and telecoms venture Jio Infocomm, to become a dominant player in global digital economy.
Transforming India's digital space
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am delighted that Mubadala, one of the most astute and transformational global growth investors has decided to partner us. I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy. We look forward to benefitting from Mubadala’s experience and insights from supporting growth journeys across the world.”
Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: "We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to address critical challenges and unlock new opportunities. We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India's digital growth journey. With Jio’s network of investors and partners, we believe that the platform company will further the development of the digital economy."
Mukesh's dream
According to a press release, Mubadala invests and partners to advance Abu Dhabi’s diversified, globally integrated economy across sectors that are driving global growth and addressing critical challenges. A significant aspect of this mandate is transformative information and communications technology investments which include cognitive computing, ICT infrastructure, telecoms, and satellite operations.
These big-ticket investments that Jio Platforms has been luring are seen as a precursor to getting it listed on a global platform like Nasdaq in two years. Mukesh Ambani has consistently talked about building Jio Platforms into a digital entity on the lines of Alphabet and Tencent.
