Mubadala, the Abu Dhabi-based sovereign investor has announced today that it is investing $1.2 billion in Idnain’s leading digital services company Jio Platforms. The investment will be made at an equity value of $65 billion and an enterprise value of $68 billion. The investment, a statement by the two companies said will translate into a 1.85 percent equity stake on a fully diluted basis.
The investment by Mubadala follows a series of large investments from Reliance during the last six weeks. The Indian company, with this latest investment from Mubadala, has now raised $11.6 billion during the last six weeks, with other investors being Facebook, Silver Lake, Vista Equity Partners, General Atlantic, and KKR. Saudi wealth fund PIF is also reportedly considering buying a stake in Jio.
Facebook alone had invested $5.7 billion for a roughly 10 percent stake in Jio Platforms almost six weeks ago.
Jio Platforms that is a wholly-owned subsidiary of Reliance Industries (one of the largest Indian conglomerates) owns India’s largest mobile network operator Jio and other digital businesses of Reliance. Jio Platforms currently has over 388 million subscribers.
The company has the vision to offer different types of services to 1.3 billion people and businesses across the country, including small merchants, mico-businesses and farmers.
Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, commenting on the investment, said: “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 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 in our journey to propel India’s digital growth towards becoming a leading digital nation in the world. Through my longstanding ties with Abu Dhabi, I’ve 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.”
The transaction is subject to regulatory and other customary approvals.