The private equity firm Vista Equity Partners announced on Friday that it’s going to invest around $1.5 billion in Reliance Jio platform. It’s going to join Silverlake and Facebook that have placed bets on it.
This announcement is going to give the firm Vista Equity a 2.3% stake in Reliance Jio Platforms. Moreover, in the previous three weeks, Reliance Jio has announced to sell around 13.4% stakes in Facebook for around $8 billion.
Reliance Jio was launched back in 2016, and it upended the telecommunication industry with free voice calls and data plans. Jio Platforms, which is a subsidiary of Reliance Industries, operates the venture. Moreover, it has had around 388 million subscribers since its launch.
Reliance industries make their profit from petrochemicals and oil refining. The company said on Friday that it’s going to make Jio Platforms and industry leader and thus our it in the world’s top economies. Vista began investing in the software industry in the last 20 years. Moreover, the company has cut checks to over four dozen firms.
The company announced that it’s going to find out ways to expand its portfolio companies’ services in India. Some firms already have a big presence in India, which is the world’s second-largest market.
Reliance Industries, Mukesh Ambani, who was once India’s richest man, mentioned in a statement, ‘We are excited to use the expertise and support of Vista for the benefit of Jio.’
This new commitment is going to help Ambani to improve his commitment to investors. He mentioned that he is going to cut the debt of Reliance to zero by the year 2021. However, the oil refining business has suffered greatly due to coronavirus. Moreover, its net profit in the first quarter came down by 37%.
Ambani made it clear that firms have shown interest in buying stakes in the Jio Platform. Moreover, Facebook made it clear that it would put a 9.99% stake in the firm. Furthermore, it will work in several areas, such as e-commerce. Just a few days later, Jio Mart started to test a system on Whatsapp, which is a popular app in India with 400 million users.
In a statement, Robert F. Smith, the CEO of Vista, mentioned, ‘ We believe that Jio is building a great potential for India. The vision of Mukesh, along with the awesome leadership team, has advanced the data revolution that it started.’
Reliance Jio Platforms also own several services, like smartphones, broadband service, smartphones, payment service JioPay and the live Television service JioTV
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