Reliance Jio pulls in additional $1.5B investment

Reliance pulls in additional $1.5B investment

Reliance Industries has attracted a further INR113.7 billion ($1.5 billion) of investment into its Jio Platforms tech unit, this time from Vista Equity Partners.

The US-based venture capital group now holds a 2.32% stake in the digital unit. This makes it the third largest shareholder behind Reliance Industries and Facebook, which less than a month ago invested US$5.7 billion for a 9.99% stake in Jio Platforms to become the unit’s largest minority shareholder.

As the digital arm of Reliance Industries, Jio Platforms runs the company’s broadband and eCommerce offerings as well as its mobile operator Reliance Jio, which is India’s market leading mobile provider based on subscriber numbers.

Reliance Industries’ chairman and MD Mukesh Ambani said that his firm and Vista Equity shared a “vision of continuing to grow and transform the Indian digital ecosystem”.

Vista Equity Partners CEO Robert Smith noted that the firm would help to “deliver exponential growth in connectivity across India, providing modern consumer, small business and enterprise software to fuel the future of one of the world’s fastest growing digital economies”.

In addition to Facebook’s recent investment, at the start of the month private equity firm Silver Lake obtained a 1% stake in Jio Platforms, meaning that the unit has generated investment of almost $8 billion in less than three weeks. In its Q4 fiscal report, the company noted these investments should help it to bring its net debt down to zero by its target deadline of the end of March 2021.

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