This investment by the PE firm translates into a 0.39% equity stake in Jio Platforms, which has so far attracted investments to the tune of ₹1.04 lakh crore through ten deals
Reliance Industries Limited on Saturday announced investment of ₹1,895 crore by PE firm L Catterton in RIL's digital unit Jio Platforms.
L Catterton is one of the world’s largest consumer-focused private equity firms.
This investment values Jio Platforms at an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore.
L Catterton’s investment will translate into a 0.39% equity stake in Jio Platforms on a fully diluted basis.
With this investment, Jio Platforms has raised ₹ 1,04,326.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton since 22 April, 2020.
Earlier on Saturday, RIL announced global alternative asset firm TPG will invest ₹4,546.80 crore in Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore.
Over last 30 years, L Catterton has successfully invested in various consumer brands, including Peloton, Vroom, ClassPass, Owndays, FabIndia, and more.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am delighted to welcome L Catterton as a partner in our journey to unleash the power of digital for India while providing a consumer experience that is among the best in the world. I particularly look forward to gaining from L Catterton’s invaluable experience in creating consumer-centric businesses because technology and consumer experience need to work together to propel India to achieving digital leadership."
With the latest deal, which is the tenth one, RIL has managed to so far sell 22.38% stake in Jio Platforms.
Michael Chu, Global Co-CEO of L Catterton, said, “Over our more than 30-year history, we have established a track record of building many of the most important brands across all consumer categories and geographies, from retailers, omni-channel and digitally native brands. We are strong supporters offostering growth through product development, enhanced digital capabilities and strategic alliances. We look forward to partnering with Jio, which is uniquely positioned to execute on its vision and mission to transform the country and build a digital society for 1.3 billion Indians through its unmatched digital and technological capabilities."
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.
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