Making Sense of Reliance-Owned Jio Platforms’ Fundraising Spree

Jio Platforms has raised a whopping USD 13.7 billion from global investors in less than eight weeks, a feat probably no other seven-month-old company has ever achieved anywhere in the world.

 

Experts believe that it is Jio Platforms’ ability to create multiple revenue streams from the same user base that has enchanted investors.

“For an investor, this is pretty shining and the growth in the user base is also good quarter-on-quarter. When you are able to add that kind of subscriber base and do multiple times monetization, then of course it makes it very interesting as a company,” Sanchit Vir Gogia, founder and chief executive, Greyhound Research, a technology research and advisory firm told local media Mint.

The capital infusion gives Jio Platforms leverage to “start a fresh investment cycle in apps and other services” as well as “much-needed cushion to not raise prices for its services and tariffs,” Gogia believes.

Similarly, KKR, having invested in Max Healthcare and Radiant Life Care, among others, has a deep-rooted presence in the Indian healthcare segment, which could be a potential area of interest for Reliance. Meanwhile, ADIA has a special focus on the insurance sector, another area RIL has a keen interest in, Gogia, in a recent report, said. With Mubadala’s investment in the US chipmaker AMD, Gogia believes, the sovereign wealth fund can aid Jio’s data centers in the country.

With backers like Silver Lake and General Atlantic, Jio Platforms would get all the help it needs towards a successful IPO. The Silicon Valley-based investor was one among those that infused USD 500 million in Alibaba in 2011 and 2012. When the Chinese e-commerce giant got listed in 2014 with a blockbuster IPO on the New York Stock Exchange, Silver Lake accrued stakes worth more than USD 5.1 billion, after reaping USD 278.8 million by selling a fraction of its holdings. General Atlantic has had a similar experience as it was involved with supermarket chain DMart as an anchor investor, ahead of its IPO, according to Gogia.

Moreover, Vista and KKR are expected to aid Jio Platforms in improving a myriad of its consumer apps, which, according to Gogia have received “lukewarm response,” except its music streaming platform, JioSaavn. While Vista has the subject matter insights that can help the Mumbai-based company in “improving its apps and kickstarting its software business especially with enterprise customers,” he stated, KKR has expertise in “scaling consumer apps” having invested in TikTok-owner Bytedance.

Mubadala, which has invested in telecom, data centers, and IT services companies in its home market, Gogia added, can take Jio Platforms to UAE, jump-starting its international expansion.

[KrAsia]

P.S.: For more information on the recent investments, value that each investor brings to Jio Platforms, engagement with Microsoft, impact on Bharti Airtel, and the challenges the company can expect, read this research report by Greyhound Research.


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

Have a question on this or other Technology & Innovation topics? Click here to set up an enquiry call with Sanchit Vir Gogia.


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