Reliance Industries’ Jio Platforms Limited, one of the leading digital services platforms in India, has reportedly announced the sale of 1.85% stakes to Abu Dhabi-based sovereign firm Mubadala for USD 1.2 billion.
This is the sixth deal in the last seven weeks that will inject a combined USD 11.5 billion in the company, which is selling around 19% of its stake to worldwide investors who are looking to target the second-largest internet market in the world.
Reliance Industries’ digital wing previously raised funding from five investors including Facebook, Silver Lake, KKR, General Atlantic, and Vista Equity Partners. The investment from Mubadala values Reliance Jio Platforms at USD 65 billion.
Mukesh Ambani, the Managing Director and Chairman of Reliance Industries said that the company looks forward to leveraging Mudabala’s insights and experience from supporting growth journeys across the globe.
Speaking on the deal, Khaldoon Al Mubarak, Group Chief Executive and Managing Director of Mubadala Investment Company said the company has seen how Jio has already transformed connectivity and communication landscape in India, and as its current partner and investor, the company is committed to aiding India’s digital growth journey.
He further added that with a network of partners and investors, Jio would further develop the digital economy.
In recent years, India has emerged as one of the most lucrative markets for Chinese and Silicon Valley companies that are looking to target the country’s 1.3 billion people, a lot of who remain without internet connection or smartphone.
According to sources familiar with the knowledge of the matter, Amazon is also considering buying stakes worth at least USD 2 billion in Bharti Airtel, the third largest-telecom operator in India, while Google is in talks with Vodafone Idea, the 2nd largest telecom operator, for a similar deal.