Reliance Industries Limited has played many a masterstroke in the past 2 months. The company has managed to attract 10 strategic investments (from a total of 9 investors) and has raised US 14 Bn by divesting 22.38% in Jio Platforms. We at Greyhound Research have received over 100 requests from media, investors & clients on what each of the investors brings to the table. While we have offered an explainer below, in a nutshell, we at Greyhound Research believe most of the investors in Jio Platforms are not just financial but strategic in nature and hence bring their unique value to the company.
Here’s what each of these investors bring to Jio Platforms:
1/ Facebook brings muscle on user base, data analytics, leading community platforms like Instagram, Facebook and most importantly has shared goals with RIL on targeting Indian retailers and build a thriving commerce & currency business.
2/ Silver Lake Partners can help with overseas listing of Jio and emulate the success it had with Alibaba Group in 2014 but more importantly it brings to Jio deep understanding of tech incumbents and new-age industries like eCommerce, sharing economy.
3/ Vista Equity Partners With an aim to build WeChat like model and own a vault position in key categories, RIL can be expected to make acquisitions of category leaders / increase stake in investments. For reference, they acquired Saavn.
4/ General Atlantic The intent is to leverage tech to capitalise on assets across RIL portfolio companies. RIL will put to use its recent acquisitions and offer omni-channel retail across key categories like grocery, pharma, electronics, fashion and lifestyle. This is not a digital opportunity alone. This is a hybrid opportunity, where RIL will marry its prowess in both domains.
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5/ KKR & Co Given the recent spate of foreign investors, RIL will need to make suitable changes to its board and may be even bring in additional leaders for Jio Platforms.
6/ Mubadala RIL has made significant investments in technologies like AI/ML, Cloud, IoT, Narrow Band IoT, AR/VR, Identity, Blockchain and a lot more. We at Greyhound Research believe the company will continue investing in these technologies to ensure integration.
7/ Abu Dhabi Investment Authority RIL has acquired a wide range of companies including Haptik, KaiOS, Radisys, Aaram Shop, newJ, Tesseract among others. We at Greyhound Research expect similar investments in near future to fill portfolio gaps.
8/ TPG Capital – Over past few years, the company has acquired companies like Saavn, launched new apps and now with the ability to tap onto Facebook suite of apps, investments in integration of technology stack are expected.
9/ L Catterton Partners can bring to Jio Platforms deep understanding about delivering customer experience in consumer technology businesses and alongside give access to tech from its portfolio to help deliver customised CX in new retail formats.
10/ Public Investment Fund (PIF) has a deep relationship with RIL with mutual interests in Oil, Tech, Telecom, Retail, Media, BFSI, Hospitality among other areas and can borrow from their working experience with SoftBank, and investments in Uber, Tesla, Facebook & others.
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.
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