NEW DELHI: Mukesh Ambani-led Reliance Industries Limited’s Infocomm and digital commerce unit, Jio platforms has continued its successful investment streak with US-based private equity firm, KKR now investing nearly $1.5 billion ( Rs 11, 367 crores) in the subsidiary for a 2.32% stake.
This is the fifth capital infusion into fast-growing Jio Platforms since over a month with the leading tech giant, Facebook and other private equity firms including Silver Lake, Vista Equity Partners and General Atlantic having invested in the unit.
The total investments now stand at Rs 78, 562 crores for a 17.1% stake in the Jio platforms.
The slew of investments along with Rs53,215 crore rights issue earlier announced by RIL is aimed to reducing the conglomerate’s net debt to zero by.
As of March 2020, the net debt of India’s largest enterprise, RIL stood at Rs 161,035 crore.
Ambani has focused on aggressive growth of his tech backed Jio business which has significantly contributed to RIL’s revenues over the past few years. Besides its telecommunications business( currently India’s largest) and retail, Jio Platforms has also made a series of investments in various AI/ cloud-based startups.
KKR has made the investment in Jio platforms through its Asia private equity and technology funds , its largest in Asia. Founded in 1976, some of the significant investments in the technology sector by KKR include ByteDance ( which owns Tik Tok), BMC Software and GoJek. KKR’s total investment in various technology companies globally stands at $30 billion ( enterprise value).
“KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio,” Mukesh Ambani, Chairman and Managing Director, RIL said.