The application by private equity (PE) giant KKR to purchase a share in cloud kitchen upstart Rebel Foods has been approved by the Competition Commission of India (CCI). The CCI announced that Royce Asia Holdings, a subsidiary of KKR, will purchase an undisclosed quantity of the startup’s shares and compulsorily convertible preference shares (CCPS) through a secondary transaction.
Therefore, since the proposed transaction won’t have a negative impact on competition in India, the relevant market need not be specified and can remain open in the absence of any horizontally overlapping and/or vertically complementary commercial operations of the parties in India. According to a statement from the CCI, the proposed transaction is being submitted through the green channel process. If a transaction does not pose a significant risk of having a negative impact on competition, it is considered permitted via the green channel method after being communicated to the CCI.
Funds are Expected to be Raised at a Valuation of $800 Mn to $860 Mn
This development occurs a few days after it was reported that KKR was prepared to purchase shares from Rebel Foods‘ current investors, such as Peak XV Partners and Coatue, for between $50 million and $75 million through a secondary sale. The funds are expected to be raised at a valuation of $800 million to $860 million, according to various media reports. In its Series G round, which was headed by Temasek and included current backer Evolvence, Rebel Foods raised an incredible $210 million last week. There were both main and secondary deals in the round. Rebel Foods was established in 2011 by Jaydeep Barman and Kallol Banerjee. It runs a number of quick-service restaurant (QSR) brands, including Wendy’s, Behrouz Biryani, Ovenstory Pizza, The Good Bowl, and SLAY Coffee.
Funding Till Date And Financial Report Card
With support from companies like Lightbox and Evolvence, among others, the firm has secured over $773 million in capital so far. According to reports from October of this year, the cloud kitchen unicorn planned to list on the Indian stock exchanges within the next 12 to 18 months. In terms of finances, Rebel Foods was able to reduce its net loss from INR 656.5 Cr in the previous fiscal year to INR 378.2 Cr in the fiscal year 2023–24 (FY24), a 42% reduction. From INR 1,195.2 Cr in FY23 to INR 1,420.2 Cr, operating revenue increased by 19%.
Among its rivals are Tiger Global-funded Eatclub and Curefoods, which is supported by Binny Bansal. Temasek Holdings, a sovereign wealth fund based in Singapore, was approved by CCI last month to purchase a share in Rebel Foods.
KKR to invest $250 million in Reliance Retail, increasing Reliance’s valuation to $100 billion. It translates into an additional equity stake of 0.25% in Reliance Retail on a fully diluted basis.
KKR & Co. Inc. (KKR.N) has significantly strengthened its investment in Reliance Retail Ventures Limited (RRVL), the flagship retail arm of Mukesh Ambani’s sprawling business empire. The global investment giant injected an additional $250 million in Indian billionaire Mukesh Ambani’s Reliance Retail Ventures, which has valued the Indian retail giant at $100 billion, solidifying its status as one of Asia’s top companies by equity value.
The New York-based private equity firm’s latest investment translates into an additional equity stake of 0.25% in Reliance Retail on a fully diluted basis. This increases KKR’s total equity ownership in Reliance Retail Ventures to 1.42%, affirming their faith in the company’s capabilities.
Ms Isha Mukesh Ambani, Director, of RRVL, said, “We are pleased to receive continued support from KKR as an investor in Reliance Retail Ventures Limited. We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL’s vision and capabilities. We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge, and operational expertise, in our journey towards driving transformation of the Indian retail sector.”
KKR Ups Stake In Reliance Retail, E-Commerce Giant Enters The $100 Billion Club | N18V | CNBC TV18
Reliance Industries subsidiary Reliance Retail Ventures has been attracting considerable attention and investment lately because of its expansive operations. From grocery to electronics, Reliance Retail’s diverse portfolio includes partnerships with global brands like Jimmy Choo, Marks & Spencer, and Pret A Manger. With over 18,000 stores, the Mumbai-based conglomerate competes fiercely with international giants like Amazon (AMZN.O) and Walmart’s (WMT.N) Flipkart.
KKR’s latest financial infusion into Reliance Retail is primarily sourced from its Asian Fund IV, which is subjected to regulatory approvals, as confirmed by Reliance. Morgan Stanley acted as financial adviser to Reliance Retail.
Mr Joe Bae, Co-CEO, of KKR, said, “We are pleased to extend our relationship with Reliance Retail Ventures Limited. Throughout our investment period in Reliance Retail, we have been impressed by the company’s vision and extensive work to empower retailers across India through digitalization, as well as by its resilience and performance in spite of the pandemic and other disruptions. We look forward to continuing to work alongside the Reliance Retail team to support the company’s mission to build a more inclusive Indian retail economy.”
Mr Gaurav Trehan, Head of Asia Pacific Private Equity and Head of India, KKR, added, “Reliance Retail is a true corporate leader and innovator in India, and its differentiated model has the potential to digitalize and transform the country’s retail industry. We are pleased to have the opportunity to continue collaborating with this team and pursue the growth opportunities ahead.”
KKR’s latest investment strengthens its belief in Reliance Retail’s vision and potential. As the Indian retail sector continues to evolve, KKR’s deepening partnership with Reliance Retail is expected to yield mutual benefits.
Reliance Retail’s Remarkable Growth
The trajectory of Reliance Retail’s growth has been nothing short of remarkable. In 2020, it secured $5.71 billion in funding by selling a 10.09% stake to various investors, including KKR, the Saudi Public Investment Fund, General Atlantic, and the United Arab Emirates’ Mubadala. KKR’s initial investment in 2020 amounted to $669.65 million. Ambani recently shared that the 2020 fundraising increased the valuation of the business to approximately $52 billion. Astonishingly, in less than three years, the value of Reliance Retail has nearly doubled.
Reuters reported earlier this month that the company is in advanced talks with global investors to raise an additional $2.5 billion by the end of September, ahead of a potential stock market listing. This aligns with Ambani’s 2019 statement to take its retail business public within five years.
Revenue of Reliance Retail from Financial Year 2012 to 2022
Reliance Retail’s Expansive Operations and Global Partnerships
Reliance Retail’s financial performance has been commendable. For the fiscal year ending in March 2023, Reliance Retail reported a consolidated net profit of $1.11 billion on revenues totaling $31.7 billion. This robust performance has coincided with Reliance’s aggressive acquisition of numerous small grocery and non-food brands as part of its strategy to establish a consumer business with annual sales of $6 billion within five years, thereby challenging international giants like Unilever (ULVR.L).
Last month, JP Morgan analysts stated that the medium-term investment case for Reliance India Limited (RIL)is driven by strong cash flows and the ability to invest in growth businesses and potential value-unlocking in the medium term.
FAQs
What is Reliance Industries Limited?
Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated revenue of $118.6 billion, cash profit of $15.3 billion, and net profit of $9 billion for the year ended March 31, 2023. Reliance’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail and digital services. Currently ranking 88th, Reliance is the largest private sector company from India to feature in Fortune’s Global 500 list of “World’s Largest Companies” for 2023. The company stands 45th in the Forbes Global 2000 rankings of “World’s Largest Public Companies” for 2023 – the top-most among Indian companies.
What is Reliance Retail Ventures Limited?
RRVL, through its subsidiaries and affiliates, operates an integrated omni-channel network of over 18,500 stores and digital commerce platforms across Grocery, Consumer Electronics, Fashion and lifestyle, and Pharma consumption baskets and has partnered with over 3 million merchants through its New Commerce initiative. Reliance Retail Limited, a subsidiary of RRVL, is the only Indian retailer in the global Top 100 and amongst the fastest-growing retailers globally as per Deloitte’s Global Powers of Retailing 2023. RRVL reported a consolidated turnover of $ 31.7 billion and a net profit of $ 1.1 billion for the year ended March 31, 2023.
What is KKR & Co. Inc.?
KKR & Co. Inc. is a leading global investment firm that offers alternative asset management capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit, and real assets and has strategic partners that manage hedge funds.
The Reliance Retail has achieved success and become the Indian largest retailer, because of its investments, the investor demand for reliance retail business is so strong that Mukesh Ambani is putting investors on a wait list. Mubadala an Abu Dhabi based investor has recently decided to invest ₹6,248 crore in the Reliance Retail to get a 1.40% equity stake for its investment.
This announcement comes day after Silver Lake partners said that it will invest ₹1,875 crore in India largest retailer. In all Reliance retail has managed to raise ₹24,847.5 crore by selling 5.6% stake to private equity and sovereign funds. That includes General Atlantic which will pick up 0.84% stake for ₹3,675 crore and KKR and co which will also invest ₹5,500 crore for 1.28% holding.
Reliance Retail has a total of 11,784 stores across consumer, electronics, grocery, general merchandise, fashion and lifestyle. And reported a consolidated turnover of ₹1,62,936 crore and net profit of ₹5,448 crore for the year March, 2020. The acquisition of future group retail and logistics business for ₹27,513 crore will add 1,736 Big Bazaar and other stores 28.3 million sq. ft. of retail area across grocery and fashion segments.
Reliance Retail is a retail initiative of the group and is a central to our consumer facing businesses. It has is a short time forged strong and enduring bonds with millions of consumers by providing them unlimited choice, outstanding value proposition, superior quality and unmatched experience across all its stores. Reliance retail is the largest retailer in the country.
Reliance Retail has adopted a multi prong strategy and operates chain of neighborhood stores, supermarkets, wholesale cash and carry stores, specialty stores and online stores and has democratized access to a variety of products and services across diverse segments for Indian consumers. Reliance retail reported a turnover of Rs. 1,30,566 crore for financial year 2018 to 2019. As of 2019, Reliance retail operates 10,901 stores across 6,700 plus cities with a retail area of over 24.5 million sq. ft.
The various subdivisions of Reliance Retail
Reliance retail operates Reliance Fresh, Reliance Smart and Reliance Market stores. In the consumer electronics category Reliance Retail operates Reliance Digital, Reliance Digital Express mini stores and Jio stores and in the fashion and lifestyle category it operates Reliance Trends, Project Eve, Reliance Footprint, Reliance jewels and AJIO.com in addition to a large number of partner brand stores across the country.
Reliance Retail has emerged as the partner of choice for many International brands and has established exclusive partnership with many revered International brands such as Diesel, Superdry, Hamleys, Ermenegildo, Zegna, Marks and spencer, Paul and shark, Thomas pink, Kenneth Cole, Brooks Brothers, Steve Madden, Payless Showsource, Grand Vision and many more.
Below here are the recent investments made into the Reliance Retail:
Saudi Arabia’s Public Investment Fund
On November 5, 2020, Reliance Retail, raised INR 9,555 Cr ($1.3 Bn approximately) from Saudi Arabia’s Public Investment Fund (PIF), to accelerate the growth of its digital retail empire. It is a record eighth by marquee global investors in Reliance Retail. This investment values Reliance Retail at a pre-money equity value of INR 4.587 lakh Cr (around $62.4 Bn)
PIF (Public Investment Fund) is one of the largest sovereign wealth funds in the world, which works alongside various global strategic partners and investment managers. It acts as the Kingdom of Saudi Arabia’s primary investment arm aiming toward generating long-term value for the Kingdom of Saudi Arabia
Mubadala Investment
The most recent investment was made by Mubadala Investment Company who is investing ₹6,248 crore ($852.84 million) in the Reliance Retail giving the unit a pre-money equity value of 4.29 trillion rupees. The Mubadala’s investment will translate into a 1.40% equity stake in Reliance Retail on a fully diluted basis. This investment by Mubadala pegs pre investment equity valuation of Reliance Retail at ₹4.28 lakh crore.
Ambani is also replicating funding blitz for the retail unit after selling stakes in Jio Platforms as investors, including Facebook Inc. and Google, bet on his efforts to build a technology giant that offers data, content and commerce. Mubadala had also invested $1.2 billion in Jio Platforms earlier this year.
Shareholding
No of Shares
Vanishree Commercials Ltd
297,000,000
Infotel Infocomm Enterprises Pvt. Ltd
36,000,000
Silver Lake
109,929,733
KKR
81,348,479
General Atlantic
53,865,885
Silver Lake
27,482,594
Mubadala
91,572,004
Total Equity Shares of RRVL
6,534,957,216
General Atlantic Investment
General Atlantic a leading global growth equity firm decided to invest ₹3,675 crore into Reliance Retail. This investment values Reliance Retail at a pre money equity value of ₹4,285 lakh crore. The general Atlantic investment will translate into a 0.84% equity stake in reliance retail on a fully diluted basis. This marks the second investment by General Atlantic in a subsidiary of Reliance Industries, following a ₹6,598.38 crore investment in Jio platforms.
Silver Lake Investment
The Silver Lake would invest ₹7,500 crore in subsidiary Reliance Retail Ventures for a 1.75% stake, valuing the company at ₹4.2 trillion. Earlier in 2020, Silver Lake invested ₹10,202 crore in Jio Platforms, Reliance digital service platform. This however, set the stage for more stake sales by the company including one to PE firm KKR, is also an investor in Jio Platform.
Silver Lake is a US based Global Technology Investment firm with an asset size $60 Billion. It has 56 portfolio companies and 300,000 employees by these firms. The company has made investment in India with Jio Platform, Byjus and Eka with 10 acquisitions.
Global Investment firm KKR has also invested ₹5,500 crore in Reliance Retail for 1.28% equity share. This was the second investment by KKR in a Reliance subsidiary, following a ₹11,367 crore investment in Jio Platform which was announced earlier in 2020. KKR investment values Reliance Retail at a pre money equity value of ₹4.21 trillion.
KKR has also invested $1.5 billion in the Jio platforms, its Co-founder and Co –CEO says that “we are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Reliance retail new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers have moved to shopping online”.
Jio platforms backing Reliance Retail
RIL had given the option to investors in Jio Platforms to consider backing Reliance Retail as it sought to unlock value, following the acquisition of Future Group’s retail assets last week, persons in the know said. Reliance Retail could look at offloading a 25-30% stake to a combination of private equity firms and tech giants such as Facebook, Google, and Intel, presenting telecom and retail as a potent force in India’s consumption story.
Along with Jio, retail contributes 35% to Reliance Industries consolidated earnings before interest, taxes, depreciation, and amortization (Ebitda), Mukesh Ambani, RIL’s chairman, had said at the firm’s annual general meeting in July. Reliance has offloaded nearly 33% in Jio Platforms to 14 investors for Rs 1.52 trillion between April and June, emerging as the only firm in the country to go in for a massive monetization exercise at the height of the lockdown.
The reliance Retail runs supermarkets, India largest consumer electronics chain store, a cash and carry wholesaler, fast fashion outlets and an online grocery store called as Jio Mart. Ambani says that “we will induct global partners and investors into Relaince Retail in the next few quarters”. As the firm was planning to scale up Jio Mart as it new venture.
Some facts on Jio Mart
JioMart, which went live across 200 cities in May has crossed 250,000 in daily orders with the number growing each and every day. Since then daily orders have crossed the 400,000 mark. JioMart was pegged at ₹ 500 per transaction, but Ambani is trying to increase this number by taking the platform into areas beyond groceries, including electronics, fashion, and healthcare.
The company is also trying to work closely with WhatsApp which is owned by Facebook to boost the reach of JioMart. Apart from small merchants, Reliance Retail would also look to work closely with farmers to source more food items from them, as it seeks to scale up its farm to fork operations. At the same time, Reliance Retail would continue to push its presence into small towns and cities, Ambani said, adding more outlets in these places.
Reliance Jio is not just a telecom network, it is an entire ecosystem that allows Indians to live their digital life to the fullest. It was founded by Mr Mukesh Ambani who has been working on the JIO Infocomm Ltd since 2010. The idea is said to have come into existence when his daughter Isha Ambani complained of Low data speed (She is to thank for the fast downloads we are availing using JIO now).
Jio Platforms is a next-generation technology platform focused on providing high-quality and affordable digital services across India. Jio Platforms has made significant investments across its digital ecosystem which is powered by leading technologies like broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things(IoT), augmented and mixed reality, and blockchain.
Jio’s vision is to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, micro-businesses, and farmers so that all of them can enjoy inclusive growth together. With these investments, Ambani plans to drive Jio ahead in the competition with giants like Amazon.com Inc. and Walmart Inc., both of which have investments in.
In this article, we will talk about the companies that have invested in Reliance JIO in 2020. So let’s get started.
The social media giantFacebook had announced on April 22 its plans to invest $5.7 billion which is Indian INR 43574 Crore for a 9.99% stake in Reliance Industries Limited’s(RIL) telecom business, Reliance Jio. By partnering with Jio, Facebook plans to take advantage of its popular WhatsApp messenger to offer digital payment services to small grocers in India.
With a 9.9 % stake in Reliance Jio, Facebook gets a firm foothold in a fast-growing market in India. Also, it helps Reliance Jio to significantly cut down its debts. The deal valued Jio at Rs 4.62 lakh crore ($65.95 billion). It was Facebook’s biggest deal since the $22 billion buyouts of WhatsApp in 2014.
Three days later, Reliance Retail signed a commercial agreement with Facebook’s WhatsApp to further the reach of its online venture JioMart as it went live on WhatsApp on April 26.Jio Mart began offering its services in sub-urban Mumbai areas like Navi Mumbai, Thane, and Kalyan. These services will be extended all over the country.
This deal is expected to show the capacity for scaling due to a heavy user base comprising 400 millionWhatsApp users and Jio’s 388 million subscribers. JioMart uses WhatsApp to bring in high-speed information and digital cash. JioMart and Whatsapp will empower nearly 3 crores of small Indian Kirana shops to digitally transact and take on giants such as Amazon India.
Silver Lake Partners and Jio Deal
Jio-Silver Lake deal came less than two weeks after the Facebook deal. On the 4th of May, Silver Lake Partners, an American private equity giant, bought a 1% stake in Jio Platforms for INR 5,655.75 crore($750 million). This deal took Jio’s enterprise value to INR 5.15 lakh crore and represents a 12.5% premium to the equity valuation of Facebook’s investment again hitting the investing road with Jio, they invested around INR 4,546.8 crore taking around 2.08%of the company stake. Now the aggregate investment by this firm is around INR 10,202.55 crore.
"Silver Lake Partners has an outstanding record of being a valuable partner for leading technology companies globally. We are excited to leverage insights from their global technology relationships for the Indian digital society’s transformation."- Mukesh Ambani, Chairman, Reliance Industries Limited
These deals will help Reliance use Facebook’s tech in its new businesses. It will give the US tech giant’s Indian reach a massive boost through a partner in Ambani who is widely perceived to be influential in government circles. Silver Lake’s investment highlights Reliance’s ability to monetize its digital services business and strengthens Reliance’s already strong financial flexibility.
Silver Lake Partners (SLP) was launched in 1999 as a specialist firm to focus on technology company investments. SLP made headlines after acquiring PC maker Dell Inc in conjunction with Michael Dell in 2013. Its portfolio of investments collectively generates revenues of more than $204 billion annually. Its portfolio includes Twitter, Airbnb, Alibaba Group, Ant Financial, Didi Chuxing, Motorola Solutions, and City Football Group.
Vista Equity Partners and Jio Deal
On the 8th of May, Vista Equity Partners, a US-based private equity firm running the world’s largest exclusively tech-focused fund, bought a 2.32 % stake in Jio Platforms for INR 11,367 Crores. The deal made it the third high-profile investment in the Reliance Industries Ltd’ (RIL) unit and highlights Jio’s status as a next-generation software and platform company.
This deal valued Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Vista’s investment is at a 12.5% premium over the deal with Facebook. It will be Vista’s biggest investment outside of its home country and it’s first in Asia. With this deal, Jio has become the fourth most valued entity in India after HDFC Bank, TCS, and RIL.
“In Robert and Brian, whose family hails from Gujarat, I found two outstanding global technology leaders who believe in India and the transformative potential of a digital Indian society. We are excited to leverage the professional expertise and multi-level support that Vista has been offering to its investments globally for the benefit of Jio.” – Mukesh Ambani, Chairman, Reliance Industries Limited
The investment from Vista will be used by Jio to buy back RIL’s optionally convertible preference shares. The Vista deal will further help in fixing the equity value of Jio and improve RIL’s cash flows. This will accelerate RIL’s deleveraging exercise as RIL plans to eliminate Rs 1.75 lakh crore of net debt by the end of this financial year. Through Jio, Vista hopes to earn good returns as and when the telecom and technology company goes public, which is part of Ambani’s plan.
“Mukesh’s vision as a global pioneer, alongside Jio’s world-class leadership team, has built a platform to scale and advance the data revolution it started. We are thrilled to join Jio Platforms to deliver exponential growth in connectivity across India, providing modern consumer, small business, and enterprise software to fuel the future of one of the world’s fastest-growing digital economies.” -Robert Smith, Chairman, Vista
General Atlantic and Jio Deal
Billionaire Mukesh Ambani extended his fund-raising streak for Jio Platforms Ltd. by selling a 1.34% equity stake to General Atlantic on May 17. Reliance Industries Limited and Jio Platforms Limited announced an investment of ₹ 6,598.38 crores ($873 Mn) stake by General Atlantic, a leading global growth equity firm that has invested in Airbnb Inc. and Uber Technologies Inc.
This investment values Jio Platforms at an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore. The deal will consolidate backing for Jio’s plan to use its almost 400 million mobile phone subscribers as a base for an e-commerce drive to use India’s vast consumer markets—from retail to education and payments. The deal will also support Ambani’s vow to pay down more than $20 billion of net debt at Reliance earlier than an initial March 2021 deadline.
“We are delighted that a renowned global investor like General Atlantic is partnering with us in our journey to digitally empower India and Indians. Jio is committed to making a digitally inclusive India that will provide immense opportunities to every Indian citizen.” -Akash Ambani, Director, Reliance Jio
General Atlantic is a leading global growth equity firm with a 40-year track record of investing in the Technology, Consumer, Financial Services, and Healthcaresectors. It operates across 14 locations as an integrated team under a global investment platform. To date, General Atlantic has invested in prominent entrepreneurs and companies around the world such as Airbnb, Alibaba, Ant Financial, Box, ByteDance, Facebook, Slack, Snapchat, Uber,and other global technology leaders.
KKR & Co. Inc. and Jio Deal
KKR is an American private equity firm and has also been one of the key investors by buying around INR 11367 crores around 2.32% of the stake.
“We are looking forward to leveraging KKR’s global platform, industry knowledge, and operational expertise to further grow Jio.” -Mukesh Ambani, Chairman, Reliance Industries Limited
KKR was founded in 1976 by Henry Kravis and George Roberts and since then has been a prime equity firm of the US market.
“Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide.” – Henry Kravis, Chairman, KKR
Mubadala Investment Company and Jio Deal
Striking a deal of Rs 9093.6 crore with the Abu Dhabi based investment company will surely help Reliance Jio to expand its reach towards the gulf countries. It will help them expand their venture globally. While so many US-based firms investing now Abu Dhabi based firms also becoming important investors.
Mubadala Investment Company founded in 2017 in Abu Dhabi, UAE has been one of the key investing companies which have helped in growing up UAE economy on a global front. Investments like these can play a key role in developing Jio hold all around the world.
Abu Dhabi Investment Authority (ADIA) and Jio Deal
Abu Dhabi Investment Authority (ADIA), one of the world’s biggest sovereign wealth funds, will pump Rs 5,683.5 crore into Jio Platforms joining the list of global tech investors that have invested millions of dollars on the Reliance Industries unit due to its unique potential to dominate India’s booming digital economy.
“I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential.” -Mukesh Ambani, Chairman, Reliance Industries
The decision by ADIA, a globally-diversified investment institution, in exchange for a 1.16 % stake, is an unprecedented eighth investment in Jio Platforms in less than seven weeks and marks the largest continuous fundraising action by a company anywhere in the world. RIL, the oil-to-retail-to-telecom conglomerate, has now sold a little over 21 % stake in Jio Platforms through a flurry of fundraising deals and raised as much as Rs 97,885.65 crore, or $12.96 billion.
“Our investment in Jio is a further demonstration of ADIA’s ability to draw on deep regional and sector expertise to invest globally in market-leading companies and alongside proven partners.” -Hamad Shahwan Aldhaheri, Executive Director, ADIA
TPG and Jio Deal
TPG Captial is going to invest 4,546.80 Crores for a 0.93% stake in the Jio platform, making it the ninth deal in just a span of seven weeks taking the combined fundraising in the Reliance Industries unit across the 1 lakh crore mark. TPG has previously invested in Companies like Airbnb, Uber and Spotify.
“Today, I am happy to welcome TPG as valued investors in our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem. We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better.” -Mukesh Ambani, Chairman, Reliance Industries
In TPG’s more than 25 years of history, it has successfully built an ecosystem made up of hundreds of portfolio companies and a value-added network of professionals, executives and advisors around the world. By offering institutional support and global resources, TPG enables these companies to reach their full potential and unlock greater possibilities.
“We are excited to partner Reliance to invest in Jio. As an investor in growth, change, and innovation for over 25 years – and with a longstanding presence in India — we are excited to play an early role in Jio’s journey as they continue to transform and advance India’s digital economy. Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come.” -Jim Coulter, Co-CEO, TPG
L Catterton and Jio Deal
The world’s largest consumer-focused private equity firm L Catterton is going to invest Rs 1,894.50 crore in Jio Platforms for a 0.39% stake in Reliance Jio. With this Reliance, Jio has made a historic record with 10 investments in just seven weeks and has raised INR 104,326.95 Crores from leading global investors since April 22nd, 2020.
“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.” -Mukesh Ambani, Chairman, Reliance Industries
L Catterton is a preferred investment partner for several leading consumer-focused brands around the world. Having a 30-year track record of leveraging its operational expertise, deep sector insights, a global network of resources, and its unique partnership with LVMH and Groupe Arnault, L Catterton has successfully invested in and helped build some of the most innovative brands at the forefront of the evolving consumer landscape, including Peloton, Vroom, ClassPass, Owndays, FabIndia, and more.
“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 of fostering 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" -Michael Chu, Global Co-CEO, L Catterton
Saudi Arabia’s PIF and Jio Deal
Saudi Arabia’s wealth fund Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds is all set to pick up a 2.32 per cent stake in Indian oil-to-telecom conglomerate Reliance Industries’ Jio, for an estimated $1.5 billion. With PIF coming on board, Jio Platforms has diluted 25 per cent of its equity. That’s the maximum they intend to dilute to financial investors, which includes Mark Zukerberg’s Facebook. Any new investors coming on board in future will have to be “strategic investors, a tech giant, for instance,” said a source who was part of the deal-making process.
Conclusion
The secret behind Jio’s success is that it’s customer-centric and has a webscale mentality. Reliance Jio made it look easy when it successfully swooped into the jam-packed and super competitive mobile market with free 4G voice and data service. So in short Reliance Jio aims at harnessing the full potential of the internet to create a digital revolution through its technologies. Innovative services and long-term planning will radically bring the world to one’s fingertips much faster and also transform the way Indians think, work, live, and are entertained.
FAQs
Who is the founder of Reliance Industries Limited?
Dhirubhai Ambani is the founder of Reliance Industries Limited.
Who is Mukesh Ambani?
Mukesh Ambani is the managing director of Reliance Industries Ltd.
Nitin Konde
