Jio Platforms scores Rs. 1,894 crore investment from Intel
Jio Platforms, the entity that holds the telecom and digital businesses of Mukesh Ambani's Reliance Industries Limited (RIL), has scored another big investment. This time, the company has announced it is raising Rs. 1,894.50 crore ($253.5 million) from Intel Capital, the investment arm of popular American tech giant Intel Corporation. Here's all you need to know about it.
A few hours ago, Intel Capital announced it will be investing Rs. 1,894.50 crore in Jio Platforms for a 0.39% stake in the company. The investment, according to a statement issued by the chipmaker, values the Indian firm at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore, the same implied in its other recent deals.
Jio Platforms currently dominates India's digital space; the company's telecom business, Jio Infocomm, debuted three-and-a-half years ago, and in such a short span, it has become the largest in the country with 388 million subscribers. Beyond that, the firm also manages Reliance's home broadband business Jio Fiber, feature phone business, music streaming service JioSaavn, on-demand live television service, a payments service, among other things.
"Jio Platforms' focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel's purpose of delivering breakthrough technology that enriches lives," Wendell Brooks, Intel Capital President, said in a statement. "Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence," he added.
With this, the total capital secured by Jio Platforms in the last three months has gone up to Rs. 1,17,588.45 crore. The company has sold a combined stake of 25.09% to 11 high-profile investors, including Facebook, General Atlantic, TPG, KKR, Silver Lake (twice), L Catterton, Vista Equity Partners, Abu Dhabi Investment Authority, Mubadala Investment Company, Saudi Arabia's PIF, and now, Intel.
"Intel is a true industry leader," Ambani said after the deal. "We are therefore excited to work together with Intel to advance India's capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians." The chipmaker has been operating in India for decades and employs thousands at its state-facilities in Bengaluru and Hyderabad.