Reliance Jio has cut three equity deals with three major investors in three weeks. First came the $5.7 billion stake sale to Facebook, making it the largest minority shareholder in Jio, followed by another 1.15 percent dilution to Silver Lake Partners, and finally, a $1.5 billion investment from Vista Equity Partners only three days ago.
Jio Platforms could divest another 6.5 percent in the range of Rs 25,000-35,000 crore, according to Greyhound Research (a tech advisory firm). Jio Platforms includes RIL’s internet and telecom businesses, which has an estimated valuation of $65 billion.
Analysts believe that the increasing interest from foreign investors will not only help Jio cut debt but also gear up for a prospective IPO. Some of its recent investors have rich expertise in scaling up internet businesses and taking them public.
Sanchit Vir Gogia, Founder and CEO, Greyhound Research, says, “RIL’s ambitions for Jio are broader and deeper than what meets the eye. It always wanted to take Jio beyond connectivity. Jio is a data, technology, and ecosystem opportunity. Connectivity is the lubricant for the engines of community, content, commerce, currency, and capital. The intent is to leverage tech to capitalise on assets across RIL portfolio companies.”
Greyhound Research shares that the recent investors bring in immediate capital, software-focused investments, a hands-on approach, ecosystem leverage, and turnaround expertise to Jio Platforms.
P.S.: To read a research report on the investments in Jio Platforms, click here.
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.
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