Reliance Jio Platforms has recently revealed its plan to sell a stake of $750 million to Abu Dhabi investment authority (ADIA).
The firm is obtaining more and more investments at the peak of this global pandemic.
The three and half-year-old digital unit of Reliance Industries has obtained $13 billion from seven different investors, which include General Atlantic, Facebook, and the U.S. equity firm Silver Lake by selling a 20% stake.
The investment of today from ADIA is the third deal of Reliance Jio Platforms. It is India’s second telecom operator, with 388 million subscribers.
Now, Jio Platforms is valued at $65 billion. It stated that it’s going to sell a $1.2 billion stake to Abu Dhabi based firm, Mubadala. On Friday, the company announced that silver lake was investing another $600M to increase its stake in Jio to 2.1%.
This deal has also captured the appeal of Jio Platforms to the foreign investor, looking for a piece of the largest market on the internet. Recently, Jio shocked the telecom industry by offering voice calls at cut-rate prices.
India has become one of the biggest ground for Silicon Valley. Now, the Chinese firms are winning the 1.3 billion people in the nation, who don’t have internet connections.
According to media reports, Amazon is buying a $2 billion in Bharti Airtel, which is India’s third-largest telecom operator. Moreover, Google has had a similar deal with Vodafone Idea.
Hamad Shahwan stated that Jio Platforms is going to benefit from major economic developments and the “effects of technology on people and their lives.”
“The business growth has happened due to strong strategic execution. Our investment in Jio is a demonstration of the ability of ADIA to invest in leading companies with proven partners,” he stated.
This new investment has helped Ambani to improve his commitment to the investors. The firm didn’t have any debt back in 2012. However, things changed when it tried to build Reliance Jio.
The core business of Reliance industries has also been badly affected by the coronavirus outbreak. Its net profit in the Quarter, which ended on March 31, fell by around 37%.
“I am quite happy to announce that ADIA is partnering with Jio Platforms for digital leadership and growth opportunities. This investment is also an endorsement of India’s potential.”
