India’s Reliance Jio Platforms to sell $600 million stake to TPG – TipsClear

US private equity firm TPG On Saturday, it said it would invest $ 600 million in Jio platforms by joining a roster of high-profile investors including Facebook and Silver Lake, which have supported India’s top telecom operator at the height of the global epidemic.

TPG said it was acquiring a 0.93% stake in Jio platforms, giving the Indian firm a valuation of $ 65 billion. TPG, which manages assets worth $ 79 billion, is the eighth investor to have agreed to return Mukesh Ambani’s telecommunications network in only several weeks.

Reliance live The platforms, attracting over 388 million customers, have acquired the company for $ 13.49 billion by selling approximately 22% stake in Facebook, Silver Lake, KKR, Vista Equity Partners, General Atlantic, Mubadala, Abu Dhaba Investment Authority, and TPG.

TPG, which is also an investor in Uber, Spotify and Airbnb, said it was influenced by a three-and-a-half-year subsidiary of India’s most valuable company (Reliance Industries) in the country. Mukesh Ambani India’s wealthiest man, shared a similar complement to TPG’s track record.

TGP co-chief executive Jim Coulter said the company was “excited to play an early role in Jio’s journey as they continue to transform and grow India’s digital economy. Jio is a disruptive industry leader who continues to grow Empowering small businesses and consumers in India by providing them with critical, high quality digital services. The company is bringing unmatched capability and execution capabilities to the market, which is likely to bring in all technology companies. “

Saturday’s announcement captured the growing appeal of the Jio platform to foreign investors who are watching a slice of the world’s second-largest internet market. Jio, which began its commercial operations in the second half of 2016, offered mobile data and voice calls at a rate cut in the telecom market in India.

High-profile angel investor Pankaj Jain told TipsClear that Jio Platforms’ digital services suite has helped it attract foreign investors. Jio Platforms has a bevy of digital apps and services including digital streaming and JioSaavn (which it says will call it publicly), television service JioMoney and payment app JioMoney, as well as smartphones, and broadband businesses. These services are available to Jio customers at no additional charge.

“Foreign investors see that Pipe owns a race downstream in terms of ARPU (average revenue per user), but having multiple bundled services seems to be the future for telecom companies. Strengthen their content strategy By doing so, he has appealed to investors to see the same strategy playing out in other markets. “Unfortunately, it can still be seen whether the content can help increase margins in India.”

In the past year, Jio has also entered the video gaming category, unveiling the video call assistant to automate customer support, a deal with Microsoft to subsidize Office 365 and Azure for small businesses in India , And unveiled plans to bring in new films. People’s House on the same day of its theatrical release.

Mahesh Uppal, director of communications consultancy firm Com First, said that Reliance Jio Platforms did not share why it was raising money, deploying capital to cut net debt of oil-retail giant Reliance Industries to the tune of about $ 21 billion. can go. Ambani promised to end Reliance’s liability in early 2021. Reliance Industries had no debt in 2012, but that changed when the company decided to enter the telecom market.

Ambani said in a statement, “I am happy to welcome TPG as our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem.”

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