US private equity fund KKR became the fifth big investor to buy stake in Jio Platforms Ltd, a unit of Reliance Industries Ltd (RIL). This Rs11367 crore investment is KKR's largest in Asia and will translate into a 2.32% stake in Jio Platforms on a fully diluted basis.
Over the last month, leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs78,562 crore into Jio Platforms.
Mukesh Ambani, chairman and managing director of Reliance Industries, said: "I am delighted to welcome KKR, one of the world's most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians. We are looking forward to leveraging KKR's global platform, industry knowledge and operational expertise to further grow Jio."
According to Henry Kravis, co-founder and Co-chief executive of KKR few companies have the potential to transform a country's digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. "We are investing behind Jio Platforms' impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR's commitment to supporting leading technology companies in India and Asia Pacific," he says.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers.
Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.
Founded in 1976, KKR has a long history of building leading global enterprises and successfully investing in businesses in the technology sector, including BMC Software, ByteDance and GoJek through its private equity and technology growth funds.
Since inception, KKR has invested over $30 billion (total enterprise value) in tech companies, and today the firm's technology portfolio has more than 20 companies across the Technology, Media and Telecom sectors. In addition, India has been a key strategic market for KKR with a history of investing in the country since 2006.
KKR is making the investment from its Asia private equity and growth technology funds. The transaction is subject to regulatory and other customary approvals.
Earlier this week equity firm General Atlantic had bought 1.34% stake in Jio Platforms for Rs6,598.38 crore (about $875 million).
Earlier this month, investment firm Vista Equity Partners invested Rs11,367 crore for a 2.32% stake in Jio Platforms, the holding company of Reliance Jio Infocomm.
In April 2020, Facebook invested over Rs43,000 crore for a 9.99% stake in India's oil-retail-telecom conglomerate-led Jio Platforms -- the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the Indian tech sector.
This was followed by US private equity firm Silver Lake, which invested Rs5,655 crore (nearly $750 million) for 1.15% stake into Jio platforms.