UAE-based Mubadala to invest $1.2 billion in Reliance Jio Platforms

UAE-based sovereign firm Mubadala has announced to invest $1.2 billion (~Rs 9,093.60 crore) for 1.85% stake in Reliance Jio Platforms on Friday joining Facebook ($5.7 billion), Silver Lake ($746.8 million), Vista Equity Partners ($1.5 billion), General Atlantic ($870 million), and KKR (1.5 billion) in India’s largest Telecom company and a subsidiary of Reliance Industries.

Headquartered in Abu Dhabi — Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi.

Mubadala’s US $229 billion portfolio spans five continents with interests in multiple sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, pharmaceuticals, medical technology, agribusiness and a global portfolio of financial holdings across all asset classes.

Reliance Jio is the largest telecom network of the country with over 388 million users.

“This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore,” the company said in a statement that remains the same as with investment after KKR.

Since April, Reliance Jio has announced to sell 17.1% of stake in the firm to Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, and Mubadala for about $11.7 billion (Rs. 87,655.35 crore).

India’s telecom sector has become the new playground for the Global tech giant as Amazon is reported to be investing $2 billion in Bharti Airtel while Google is reported to be investing in Vodafone-Idea.

Bharti Airtel has already received investment from Nokia to enhance its network operations in Inda.

Jio Platforms is the suite of services including music streaming service JioSaavn, smartphones, broadband business, on-demand live television service JioTV, and payments service JioPay.

After the investment from Facebook, the company started its JioMart e-commerce venture service in India with orders can be placed via Whatsapp that has more than 400 million users in India.