Jio and Saudi Arabia's PIF Deal: This is ELEVENTH investment in Jio Platforms within nine weeks

PIB has invested ₹ 11,367 crores for a 2.32 % stake in Jio Platforms. With this investment, Jio Platforms has raised ₹ 115,693.95 crores from leading technology investors. These include Facebook, Silver Lake Partners (two investments), Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF.

At ₹ 115,693.95 crores, it is the largest continuous funds raise by a company anywhere in the world. Remarkably, this was also done amidst a global lock-down, clearly signifying India’s digital potential and Jio’s business strategy. PIF’s investment is at a similar valuation to the other recent PE investments in Jio. The equity valuation is of ₹ 4.91 Lakh crore and enterprise valuation is of ₹ 5.16 Lakh crores.

This investment is another strong endorsement of Jio’s tech capabilities, disruptive business model and secular long-term growth potential. It further reaffirms Jio’s continuing attraction among global investors for being the best representative of India’s digital potential. Also, it endorses Jio's deep understanding of the Indian markets and the rapid digitisation opportunity post-covid. The investments back the capabilities of Jio to bring cutting-edge technologies and tools. These include AI, Blockchain, AR/VR, Big data into play for all Indians.

About PIF

PIF, founded in 1971, is the sovereign wealth fund of Saudi Arabia. It is among the largest sovereign wealth funds in the world with total estimated assets of nearly $400 billion. Further, it was founded to invest funds on behalf of the Government of Saudi Arabia. It is also developing a portfolio of high quality domestic and international investments diversified across sectors, geographies and asset classes.

The PIF operates through six investment pools. These comprise of local and global investments in line with its objectives to actively invest over the long term to maximize sustainable returns. Further, these can be investment partners of choice for global opportunities, and enable the economic development and diversification of the Saudi economy. Further, the company aims to be a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.

Mukesh Ambani, on the Jio-PIF deal, said:

We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms. I have also greatly admired the defining role of PIF. It has driven the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Jio Platforms and look forward to their sustained support and guidance as we take ambitious steps to accelerate India’s digital transformation for enriching and empowering the lives of 1.3 billion Indians.

His Excellency Yasir Al-Rumayyan, Governor of PIF, commented:

We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth. This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia’s economy and our country’s citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom.

The transaction is subject to Indian regulatory and other customary approvals. Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels