Mumbai, May 18: Following the US tech giant Facebook, another American Private Equity firm General Atlantic buys 1.34 percent stake for ₹ 6,598.38 crores in India's leading digital services platform 'Jio'. This became the fourth mega-investment in Jio Platforms in less than one month.
The Rs 6,598 crore investment in the Indian telecom major marks General Atlantic’s largest investment in Asia. With this big investment, Jio Platforms has raised Rs 67,194.75 crore from leading technology investors including Facebook, Silver Lake Partners, Vista Equity Partners, and General Atlantic, in the past four weeks.
Talking about this investment, Mukesh Ambani said that he is thrilled to welcome General Atlantic, a marquee global investor, as a valued partner.
“General Atlantic shares our vision of a Digital Society for India and strongly believes in the transformative power of digitization in enriching the lives of 1.3 billion Indians. We are excited to leverage General Atlantic's proven global expertise and strategic insights across 40 years of technology investing for the benefit of Jio," he further said in the statement.
General Atlantic is a leading global growth equity firm with a 40-year track record of investing in the technology, consumer, financial services, and healthcare sectors. As an integrated team operating under a global investment platform across 14 locations, General Atlantic invests behind themes that are driven by innovation and entrepreneurship and supported by long-term secular growth, said the statement.
The company has a longstanding tradition of backing disruptive entrepreneurs and companies around the world, including Airbnb, Alibaba, Ant Financial, Box, ByteDance, Facebook, Slack, Snapchat, Uber, and other global technology leaders.
Bill Ford, Chief Executive Officer of General Atlantic, said that as long-term backers of global technology leaders and visionary entrepreneurs, the company could not be more excited about investing in Jio.
"We share Mukesh's conviction that digital connectivity has the potential to significantly accelerate the Indian economy and drive growth across the country. General Atlantic has a long track record working alongside founders to scale disruptive businesses, as Jio is doing at the forefront of the digital revolution in India."
Akash Ambani, Director of Reliance Jio, said that 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 especially to our highly talented youth".
"General Atlantic's endorsement and partnership energises Jio's young team to set, and achieve, even more, ambitious goals in our onward march," he further added.
The funds also support Ambani’s vow to pay down more than $20 billion of net debt at Reliance earlier than an initial March 2021 deadline.
So far Ambani, who has a net worth of $53.7 billion, raised $8.8 billion from selling around 15% in Jio. Earlier in April, Facebook had picked up a 9.99 percent stake in Jio Platforms at Rs 43,574 crore ($5.7 billion), making it the largest FDI for a minority investment in India.
Within days of that deal, Silver Lake - the world's largest tech investor - bought a 1.15 percent stake in Jio Platforms for Rs 5,665.75 crore. On May 8, US-based Vista Equity Partners bought a 2.32 percent stake in Jio Platforms for Rs 11,367 crore.