US PE Firm TPG in talks to invest over $1 billion in Reliance Jio: Report
TPG (previously known as Texas Pacific Group), an American private equity (PE) firm, is reportedly looking to invest in Jio Platforms, the holding company of Reliance Jio. If these talks come to fruition, TPG will join other PE companies like General Atlantic, KKR, Silver Lake, Vista Equity Partners as an investor in Jio. Apart from the aforementioned PE firms, Facebook, Mubadala, and Abu Dhabi Investment Authority (ADIA) have also recently announced significant investments in Reliance Industries Limited’s Jio Platforms.
Update (June 13): Reliance Industries has confirmed TPG’s investment in Jio Platforms. Read the details in our full report.
TPG – Jio deal
The Economic Times brings word of this development citing people familiar with the discussions. According to the publication, TPG could invest anywhere between $1 billion and $1.5 billion in Jio Platforms. An official announcement is expected over the next few days. Jio Platforms is the umbrella entity that includes the RIL’s telecom, technology and e-commerce plays.
According to TPG’s website, it already holds investments in several technology companies, including Airbnb, BookMyShow, Lenskart, McAfee, PropertyGuru, Uber, and Zscaler.
Jio Platforms has raised nearly $13 billion over the last seven weeks by the previously mentioned investors for around 21 percent stake.
With over 385 million telecom subscribers, Reliance Jio has emerged as a key business for RIL as the Indian giant gets ready for the future.
Akash Ambani and Jio deals
Meanwhile, a report by Business Insider claims that Mukesh Ambani’s son Akash Ambani who is the director of Reliance Jio, played a key role in choosing Facebook as the first investor in Jio Platforms. Akash Ambani along with Reliance Retail CEO Manoj Modi are involved in closing the investment deals.
With Jio set for stock market listing in the next few years, the investors are hoping to get massive returns on their investment. The Jio investments are also helping RIL pare its massive debt pile. RIL had net debt of Rs. 1.53 lakh crores at the end of the December 2019. RIL also recently closed its Rs. 53,124 crores rights issue that is also going to help with debt.