Reliance Jio Platforms raise ₹11,367 crore from The Public Investment Fund

Reliance Industries Limited on Thursday announced raising an investment of ₹11,367 crore from Saudi Arabia's The Public Investment Fund (PIF).  This is the eleventh investment in Reliance Jio's digital platform since April this year.

The announcement comes less than a week after Reliance Jio announced raising ₹4,586.80 crore from TPG. 

The PIF investment is at a similar valuation to the other recent PE investments in Jio which is an equity valuation of ₹4.91 lakh crore and enterprise valuation of ₹ 5.16 lakh crore. PIF’s investment will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis. 

Since April 2020, Reliance Jio Platforms has raised ₹115,693.95 crore from investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton. Jio has so far sold 24.7% stake in the company.

Morgan Stanley was the financial advisor to Reliance Industries while AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms. I have greatly admired the defining role PIF has played in driving the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Jio Platforms and look forward to their sustained support and guidance as we take ambitious steps to accelerate India’s digital transformation for enriching and empowering the lives of 1.3 billion Indians.”

Yasir Al-Rumayyan, Governor of PIF, commented: “We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth. This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia’s economy and our country’s citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom.”