Jio set to raise Rs 11,367 Cr from KKR for a 2.32% stake

Global investment firm KKR is all set to invest Rs 11,367 crore in Jio Platforms for a 2.32% stake on a fully diluted basis. The latest deal values Jio platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. 

Following the latest investment, Jio platforms have secured an aggregate investment of Rs 78,562 crore from 5 leading technology investors which include Facebook, Silver Lake, Vista, and General Atlantic. Jio marks KKR’s biggest bet in Asia.

Commenting on the deal, Jio’s Chairman and Managing Director Mukesh Ambani said, “I am delighted to welcome KKR, one of the world’s most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians.”

While Facebook acquired a 9.9% stake in Jio for Rs 43,574 crore or $5.7 billion last month, US-based private equity firm Silver Lake Partners announced to buy a 1.15% stake for about $750 million (Rs 5,655.75 crore) at a valuation of $65 billion. Similarly, Vista Equity and General Atlantic had also picked up a 2.32% and 1.34% stake respectively on a fully diluted basis in the company. 

These sequential investments are part of Jio’s vision for enabling a digital society for India and highlights the fact that heavyweight investors believe Jio will have the edge over others in online to offline space. Recently, the company had started taking orders online (via WhatsApp) and fulfilling them with the network of retailers on Jio Mart.

KKR is a leading global investment firm that has invested in the technology sector including BMC Software, ByteDance, and GoJek through its private equity and technology growth funds. Since its inception, the firm has invested over $30 billion (total enterprise value) in tech companies and has more than 20 companies in its portfolio across the technology, media, and telecom sectors.