Silver Lake is doubling its stakes on Reliance Jio Platforms of India. The US private equity firm said on Friday that it was buying an additional $ 600 million stake in the top Indian telecom operator, which has now raised $ 12.2 billion in less than two months at the height of a global epidemic.
The Menlo Park-headquartered firm, which invested around $ 750 million in the Reliance Jio platform last month, said the additional infusion increased its stake in the Indian firm from 1.15% to 2.08%.
Silver Lake’s new investment is now the seventh deal of Reliance Jio The platform is a subsidiary of India’s most valuable company (Reliance Industries). Achieved in only several weeks by selling around 20% stake. Earlier on Friday (local time), Abu Dhabi-based sovereign firm Mubadala said it would invest $ 1.2 billion in Jio, run by India’s richest man Mukesh Ambani. Facebook, KKR, General Atlantic and Vista are other investors who have written checks to Jio platforms.
The announcement further captures the appeal of Jio Platforms, which has attracted more than 388 million customers in less than four years to foreign investors looking for a slice of the world’s second largest Internet market.
Media reports have claimed in recent weeks that Amazon is considering buying at least $ 2 billion worth of bets in India’s third-largest telecom operator, Bharti Airtel, while Google’s second-largest telecom operator, Vodafone Idea Negotiated for a similar deal.
Aegon Durban, co-chief executive and managing partner at Silver Lake, said the recent investment momentum in Reliance Jio platforms “validates a compelling business model and underscores our appreciation for Mukesh Ambani, His team and his daring vision in creating one of the world’s most notable technology companies. “
“We are excited to increase our exposure and bring our co-investors into this opportunity, further supporting the Jio platform, bringing the power of high-quality and affordable digital services to a large consumer and small business population, “Added.
Silver Lake manages approximately $ 40 billion in combined assets and committed capital and has invested in dozens of tech firms over the years, including video game engine manufacturer Unity, audio and video communications service Skype, consultancy firm Gartner, Alibaba’s Ant Financial, Computer Technology Dell. , And Chinese ride-hailing giant Didi Chuxing.
Mahesh Uppal, director of communications consultancy firm Com, said Ambani has raised capital to reduce its oil-retail giant Reliance Industries’ net debt from zero to zero in early 2021. First. The company became debt-free in 2012, but took a loan to build Jio Platforms.
“I would like to emphasize that Silver Lake’s additional investment in the Jio platform, within five weeks during the COVID-19 pandemic, is a strong endorsement of the internal resilience of the Indian economy, which is certainly large with broad digital enablement. Will happen. , “Ambani said in a statement.