KKR to invest $1.5bn in Reliance’s digital services business Jio Platforms

Indian conglomerate Reliance Industries has bagged further investment for its digital services platform Jio Platforms, this time from global investment firm KKR, which is chipping in with INR 113.67 billion ($1.5bn) for a stake of 2.32%.

Jio Platforms retains an equity value of INR 4.91 trillion and an enterprise value of INR 5.16 trillion following the latest deal.

Engaged in providing digital services in India, Jio Platforms claims to have more than 388 million subscribers. Jio Platforms is said to have made substantial investments across its digital ecosystem, powered by technologies spanning broadband connectivity, cloud and edge computing, smart devices, Internet of Things, big data analytics, artificial intelligence, augmented and mixed reality, and also blockchain.

KKR said that it is making the investment in Jio Platforms from its Asia private equity and growth technology funds.

KKR to invest $150m in Reliance’s digital services business Jio Platforms. Image courtesy of Reliance Industries Limited

Henry Kravis – Co-Founder and Co-CEO of KKR said, “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution.

“We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific.”

Very recently the Indian digital services platform bagged an investment of about $870 million from US private equity firm General Atlantic.

Jio Platforms has raised a total investment of INR 785.6 billion ($10.34 billion) from the likes of Facebook, Silver Lake, Vista, General Atlantic, and now KKR. The investment from KKR will be subject to regulatory and other customary approvals.

Morgan Stanley is the financial advisor to Reliance Industries while AZB & Partners and Davis Polk & Wardwell served as legal counsel. For KKR, Deloitte Touche Tohmatsu India is the financial advisor, while Shardul Amarchand Mangaldas and Simpson Thacher & Bartlett were the legal counsel.

Mukesh Ambani – Chairman and Managing Director of Reliance Industries said: “I am delighted to welcome KKR, one of the world’s most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians. KKR shares our ambitious goal of building a premier Digital Society in India.

“KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio.”