US PE firm L Catterton to invest Rs. 1,894 crore in Reliance Jio for 0.39 percent stake
L Catterton has become the latest American private equity (PE) firm to invest in Jio, Reliance Industries Limited (RIL) announced on Saturday. This is second such announcement today after RIL revealed an investment from another American PE firm TSG. L Catterton will be investing Rs. 1,894.50 crore (around $240 million) in Jio Platforms, quite less compared to Jio’s other investors. Apart from TSG and L Catterton, Jio is getting investments from the likes of Facebook Silver Lake, Vista Equity Partners, KKR, and more.
Jio – L Catterton deal
According to a press note shared by RIL, L Catterton will get a total equity stake of 0.39 percent in Jio Platforms for its investment that has been made at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore. With L Catterton, RIL’s Jio Platforms has now raised a total of Rs. 1,04,326.95 crore from a total of nine investors in just 52 days. RIL has divested 22.38 percent stake in Jio Platforms so far.
As mentioned, L Catterton’s Jio Platforms investment follows TSG’s Rs. 4,547 crore in the company that was announced just minutes ago.
Recent investments in Jio Platforms
|Investor in Jio||Investment||Stake in Jio|
|Rs. 43,574 crore||9.9 percent|
|Silver Lake Partners||Rs. 10,202.8 crore (2 rounds)||2.08 percent|
|Vista Equity Partners||Rs. 11,367 crore||2.32 percent|
|General Atlantic||Rs. 6,598 crore||1.32 percent|
|KKR||Rs. 11,367 crore||2.32 percent|
|Mubadala||Rs. 9,093.60 crore||1.85 percent|
|ADAI||Rs. 5,683.50 crore||1.16 percent|
|TPG||Rs. 4,546.80 crore||0.93 percent|
|L Catterton||Rs. 1,894.50 crore||0.39 percent|
About L Catterton
Based in Connecticut in the US, L Catterton was founded in 1989 and has over $15 billion in assets. L Catterton has investments in tech companies like Vroom, SteelSeries, Home Chef, and more, most of which it has already exited. Among Indian companies, L Catterton invested in FabIndia, Future Lifestyle Fashions, PVR Cinemas, and more.
Global investors are bullish on Jio Platforms right now and this investment spree started with Facebook’s investment in April. Since then, as mentioned, nine major investors have announced that they were putting money in Jio Platforms.
Jio Platforms is the holding company of Reliance Jio and other Jio interests. Reliance Jio, which is the crown jewel of Jio Platforms, started commercial telecom operations in September 2016 and since then it has garnered over 385 million subscribers across India and become the top telecom operator.