PIF-Jio Platforms Deal: Key Points To Know

Reliance Industries and Jio Platforms, on Thursday (18 June) announced an investment of Rs 11,367 crore by The Public Investment Fund (“PIF”). This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. PIF’s investment will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis.

With this investment, Jio Platforms has raised ? 115,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton, since April 2020.

With the addition of PIF’s investment, Jio Platforms has established partnerships with a marquee set of global financial investors, who will contribute to establishing the Digital Society vision for India. Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology company focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers.

Here are key points to know:

1.    This is an unprecedented ELEVENTH investment in Jio Platforms within nine weeks (since 22nd April, 2020).
 
2.    The investment is ? 11,367 crore for a 2.32 % stake in Jio Platforms
 
3.    With this investment, Jio Platforms has raised ? 115,693.95  crore from leading technology investors including Facebook, Silver Lake Partners (two investments), Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF. At ? 115,693.95 crore, it is the largest continuous funds raise by a company anywhere in the world.  It is remarkable that this was done amidst a global lock-down, clearly signifying India’s digital potential and Jio’s business strategy.  
 

4.    PIF’s investment is at a similar valuation to the other recent PE investments in Jio – equity valuation of ? 4.91 Lakh crore and enterprise valuation of ? 5.16 Lakh crore
 
5.    This investment is another strong endorsement of Jio’s tech capabilities, disruptive business model and secular long-term growth potential
 
6.    This investment further reaffirms Jio’s continuing attraction among global investors for:
a.    being the best representative of India’s digital potential
b.    deep understanding of the Indian markets,
c.    the rapid digitisation opportunity post-covid and
d.    capabilities to bring cutting-edge technologies and tools such as AI, Blockchain, AR/VR, Big data into play for all Indians
 
7.    PIF, founded in 1971, is the sovereign wealth fund of Saudi Arabia. It is among the largest sovereign wealth funds in the world with total estimated assets of nearly $400 billion. It was founded for the purpose of investing funds on behalf of the Government of Saudi Arabia and is developing a portfolio of high quality domestic and international investments diversified across sectors, geographies and asset classes.
 
8.    The PIF operates through six investment pools comprising local and global investments in line with its objectives to actively invest over the long term to maximize sustainable returns, be the investment partner of choice for global opportunities, and enable the economic development and diversification of the Saudi economy.
 
9.    PIF aims to be a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.