Reliance Jio

Mukesh Ambani is looking to expand his business beyond oil and petrochemicals and this has already gained attention of some of the big investors like General Atlantic and The Saudi Sovereign Wealth Fund. According to sources, Saudi Arabia’s $320 billion Public Investment Fund is contemplating buying a minority share in RIL’s Jio Platforms Unit.

US-based investment firm, General Atlantic who has funded companies like Airbnb Inc and Uber Technologies Inc is planning a $850- $950 million investment in Jio Platforms. The deal can be completed this month itself but the agreement is not finalized yet and plans may change.

Jio has already received $8 billion from Facebook in lieu of 10% stakes in the company while Silver Lake Partners and Vista Equity Partners said they would invest $2.25 billion total in last few weeks. Any investment that Jio receives will be an addition to the previous ones.

Investors are counting on Jio’s access to large Indian market and the capabilities to shake the traditional industries like education and payments. India is considered the only major market which allows foreign tech giants like Amazon, Walmart and Google’s Alphabet can compete for market shares.

The funding, as reported earlier will be used to repay the debts. The investments also help in enhancing the valuation of the company. The companies involved in the discussion have denied to give any clarifications on the matter.

0

Comment your thoughts

Your email address will not be published. Required fields are marked *