- Reliance Industries Limited announced on Saturday that PE firm L Catterton is investing Rs. 1,895 crores in the Jio Platforms for 0.39% stake.
Reliance Industries Limited announced on Saturday that PE firm L Catterton is investing 1,895 crores in the Jio Platforms digital unit of RIL.
L Catterton is one of the world’s largest private equity firms with a focus on consumers.
Jio Platforms is at an equity valuation of some 4.91 lakh crore and an enterprise value of some 5.16 lakh crore after this investment value.
The investment by L Catterton would turn into a completely diluted stake of 0.39 percent in Jio Platforms.
With this investment, Jio Platforms has raised approximately 1,04,326.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, and L Catterton since 22 April 2020.
Usually, L Catterton invests in fashion and retail companies, both at the core of the ambitious plans of Jio Platforms as it transforms from a telecom business into an umbrella technology platform that also sells products for daily consumption.
L Catterton has successfully invested in various consumer brands over the last 30 years including Peloton, Vroom, ClassPass, Owndays, FabIndia, and more.
Reliance Industries Chairman and Managing Director Mukesh Ambani said, “I am delighted to welcome L Catterton as a partner on our journey to unleash the power of digital for India while providing a consumer experience that is among the best in the world. I look forward in particular to gaining valuable experience from L Catterton in creating consumer-centered businesses because technology and consumer experience need to work together to propel India to achieve digital leadership.
RIL has succeeded in selling a 22.38 percent stake in Jio Platforms with the latest offer, which is the tenth.
Michael Chu, L Catterton ‘s Global Co-CEO, said, “We have established a track record over our more than 30-year history of building many of the most important brands across all consumer categories and geographies, from retailers, omnichannel and digitally native brands. With product development, enhanced digital capabilities, and strategic alliances, we are strong supporters offering growth. We look forward to collaborating with Jio, who is unique in his dream and goal of transforming the country and creating a digital society for 1.3 billion Indians
Morgan Stanley served as a strategic adviser to Reliance Industries, and Davis Polk & Wardwell & AZB & Partners. served as legal advisors.
The investments provide Jio Platforms with an equity valuation of Rs4.91 trillion and an enterprise value of Rs5.16 trillion, which is the same as most of the deals.
Facebook, KKR, Vista Equity Partners, Silver Lake, Abu Dhabi Investment Authority, Mubadala, and General Atlantic are included in the Jio investor list.
All 10 transactions are subject to regulatory approvals, with the one with Facebook likely to face further scrutiny despite net neutrality concerns.
Reliance Jio Infocomm will continue to be a wholly-owned subsidiary of Jio Networks, which offers a communication network to over 388 million subscribers.
This is getting more interesting with Jio raising more and more investment from global investors. The company has now raised Rs 1,04,326.95 from 10 investors by selling the company ‘s equity to 22.38 percent taking its total fundraising beyond the Rs1-trillion mark in less than 8 weeks.