Abu Dhabi’s Mubadala weighs $1.2 billion investment in India’s Jio Platforms

This is the sixth investment that Ambani’s Reliance Industries has raised in the last six weeks.

By Rahul Vaimal, Associate Editor
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Abu Dhabi sovereign fund Mubadala Investment Company is considering investing $1.2 billion in Jio Platforms in exchange for 1.85 percent stake in the organization.

This will be the sixth instance of capital introduction in the Reliance Industries’ digital unit in as many weeks and emphasizing its status as a lucrative proposal for some of the world’s biggest tech companies and investors.

The investment by Mubadala, which oversees assets with an estimated value of $229 billion will make the transaction at an equity value of US$65 billion and an enterprise value of $68 billion taking the cumulative amount accumulated by Jio to an astonishing $11.6 billion.

Jio Platforms, which runs movies, news and music apps as well as the telecom enterprise Jio Infocomm, has now traded a cumulative stake of 18.97 percent in six massive fundraising deals.

The group of deals was led by Facebook Inc, which bought $5.7 billion to buy 9.99 percent on April 22. Since then, General Atlantic, Silver Lake, Vista Equity Partners and KKR together spent $11.4 billion on Jio Platforms.

Mukesh Ambani, Chairman and MD – Reliance Industries

“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.”

These transactions highlight the standing of Jio Platforms as a tech powerhouse and its capacity to control India’s booming digital economy. Jio Platforms has made notable investments across its digital ecosystem, powered by leading technologies traversing broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.

Jio Infocomm is India’s biggest telecom player, accumulating more than 388 million subscribers since its launch in late 2016.

Khaldoon Al Mubarak, MD and Group CEO, Mubadala Investment Company

“We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to address critical challenges and unlock new opportunities. 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.”

Mubadala is considered the second-biggest state investor after the Abu Dhabi Investment Authority. It has more than 50 companies and ventures in more than 50 nations.

Mubadala usually makes advances in projects that produce lasting value and positive economic and social impact in communities at home and overseas, according to its website. Its collection companies are spread in areas such as aerospace, agribusiness, ICT, semiconductors, metals and mining, pharmaceutical and medical technology, renewable energy and utilities. It also handles diverse financial holdings.