On June 5, Reliance announced that US-based private equity firm Silver Lake will invest an additional Rs 4,546.80 crore in Jio platforms. Thus, bringing the aggregate investment by Silver Lake to Rs. 10,202.55 crore.
Earlier, the equity firm had declared an investment of Rs 5,655.75 crore in Reliance subsidiary Jio. Therefore, gaining a 1.15 percent stake in the telecom company. This additional investment resulted in the company to hold a 2.8 percent stake.
“With this investment, Jio Platforms has raised Rs. 92,202.15 crore from leading technology investors in less than six weeks,” the company stated in a release on June 5.
As reported by CNBC TV-18, Silver Lake is a leading investor in technology companies. The company has invested in large tech companies such as Twitter, Airbnb, Alibaba, Dell Technologies, and more.
“I would like to emphasize that Silver Lake’s additional investment in Jio Platforms, within a span of five weeks during the COVID-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy, which will surely grow bigger with comprehensive digital enablement,” said Mukesh Ambani, Chairman and Managing Director of RIL, in the release.
Facebook was the first company to invest in Jio platforms with Rs 43,574 crore, gaining a 9.99 percent stake in the company. Following which companies such as Silver Lake Partners, Vista Equity Partners, General Atlantic, KKR, and Mubadala made their investments in Jio platforms.
“We are excited to increase our exposure and bring more of our co-investors into this opportunity, further supporting Jio Platforms in its mission to bring the power of high-quality and affordable digital services to a mass consumer and small businesses population,” said Egon Durban, Co-CEO and Managing Partner of Silver Lake, as per the media release.
The company also mentioned that the transaction is subject to regulatory and other custom approvals.