US Private Equity Firm KKR will invest $1.5 billion in India’s Jio Platforms which would be Reliance Industries subsidiary’s fifth fundraising deal in a month’s time, bringing the total amount of new investment to $10 billion.
The acquisition of the 2.32% stake in Jio Platforms for $1.5 billion is KKR’s biggest investment in Asia. Recent investors in Jio Platforms include Facebook Inc, General Atlantic, Silverlake and Vista Equity Partners.
These transactions highlight Jio Platforms’ potential to become the commanding player in India’s digital economy. The telecoms unit has already thwarted several rivals with cut-throat pricing.
KKR’s purchase of a 2.32% stake pegs Jio Platforms’ equity value at roughly $65 billion, making it India’s second most valuable standalone tech firm after IT services company Tata Consultancy Services.
“We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team.”
– Henry Kravis
Co-Founder and Co-CEO – KKR Co.
The $10 billion in new funds accumulated will also help Reliance meet its target of reducing $21.4 billion in net debt this year. The oil-to-telecoms giant, controlled by Asia’s richest man Mukesh Ambani, is also trading $7 billion in new shares.
KKR, founded in 1976, has funded more than $30 billion in tech companies, including China’s ByteDance and Indonesian digital payments firm GoJek.