It seems that Reliance Jio is in trouble. Within two weeks after the Facebook deal, American private equity giant Silver Lake Partners has brought one percent stake in Jio Platforms. According to reports, the US-based Silver Lake has invested INR 5655.75 crore into Jio Platforms venture. The valuation of the digital unit of Reliance Industries is pegged at $65 billion. The news assumes importance since Facebook has invested $5.7 billion to occupy a 9.99 percent stake in Jio. The Facebook- Reliance Jio deal is the largest after the $22 billion acquisition of WhatsApp in 2014.
In a statement released to the pres, Reliance disclosed that Reliance Industries has received strong interest from other strategic and financial investors. The company is in good shape to announce a small-sized investment in the upcoming months. Facebook acquiring a massive 9.9 percent stake in Jio Platforms is valued at INR 43575 crore. This has put Reliance Jio valued at INR 4.62 Lakh crore.
Mukesh Ambani floated Reliance Jio with an aim to become India’s largest Telecom company. The company has currently 340 million customers across India who are making use of the fastest 4G network. The company adopted innovations such as low mobile Internet coupled with dedicated apps for TV, News, Music, Movies, and chat services. The company is currently working to unveil video conferencing platform named Jio Meet.
The deal with Facebook and Silver Lake Partners will surely reduce the debt burden, which got skyrocketed due to the expansion of Jio. The Reliance Industries emerges as the largest retail player due to the aggressive expansion move involving e-commerce and grocery. The company announced that they are confident of achieving zero net debt status well ahead of the schedule. Reliance Jio will continue to seek partners in its bid to revolutionize the telecom sector.
Silver Shot had acquired Dell in 2013. The company is a global leader in technology investment with over $43 billion in combined assets under management and committed capital. The company employs a team of 100 investment and operating professionals located around the world in Silicon Valley, London, Hong Kong, and New York.
Reliance intends to expand its digital business with the introduction of several apps, which includes dedicated video conferencing tools. The demand for a quality video conferencing is higher because of the security issues with Zoom. The Zoom Bombing is throwing several people crazy with students unable to work properly.
