Reliance Jio lands $870m investment from General Atlantic

Reliance Jio has attracted enormous interest from US investors in recent weeks
The landing station will help boost data capacity between India and the Middle East.
The landing station will help boost data capacity between India and the Middle East.

Share

India’s biggest telco Reliance Jio is set to receive another huge cash injection as it agreed a deal with US private equity fund, General Atlantic, to purchase a 1.3 per cent stake in the business.

General Atlantic will acquire the 1.3 per cent stake for $870 million, according to reports in the press, in a deal that values Reliance Jio at around $65 billion.

Reliance Jio has courted interest from a swathe of US investors in recent weeks, with social media giant Facebook invested a reported $5.7 billion for a 9.99 per cent stake in the company. Equity funds Vista Equity Partners and Silver Lake invested $1.5 billion and $750 million respectively, bringing total investments from US firms to almost $9 billion in the past month.

Reliance Jio was launched in 2016 and since then has revolutionised India’s telecoms market, bringing its own range of ultra cheap 4G data tariffs and affordable hansets to over 300 million subscribers. The company has played a massive role in kick starting the country’s digitalisation push.

The money from the US investors will be used to pay down the debt of Jio’s parent company Reliance Industries, whose primary business focus is in the oil and gas sector. The money will also be used to fast track the expansion and densification of Reliance Jio’s 4G networks, particularly as the country opts to work from home during the current Covid 19 pandemic.

Relaince Jio has won numerous industry awards for providing the fastest mobile download speeds in the country.   

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story