Jio Platforms to receive $1.2b from Abu Dhabi’s sovereign investment firm

Jio Platforms, the digital services arm of Indian conglomerate Reliance Industries Limited (RIL), will be receiving US$1.2 billion from Abu Dhabi-based sovereign investment firm Mubadala in exchange for a 1.85% stake in the company.

Mukesh Ambani during World Economic Forum 2007 / Photo credit: World Economic Forum

With the announcement, Mubadala has become the latest investor in Jio, joining US-based companies Facebook, Silver Lake, Vista Equity Partners, KKR, and General Atlantic. Jio’s total funding raised over the past couple of months has now reached US$11.5 billion.

Mubadala is a global investor with interests in multiple sectors such as aerospace, information and communications technology (ICT), healthcare, agribusiness, and real estate. Its US$229 billion portfolio currently spans five continents. It has offices in Brazil, Russia, and the US, as well as a joint venture in Hong Kong.

In a video announcing the deal, Mubadala’s CEO for aerospace, renewables, and ICT, Khaled Abdulla Al Qubaisi, said the move is in line with the company’s current ICT strategy and complements its other investments in telcos, satellite operations, data centers, and other ICT infrastructures.

Mubadala’s investment in Jio also further highlights the appeal of India’s massive internet market to foreign investors.

Yesterday, it was reported that Amazon is in discussions to buy a stake in Bharti Airtel worth at least US$2 billion. Airtel is one of India’s largest telcos and a competitor of Reliance Jio, the top telco in the country. Another large player in the industry is Vodafone, which was also reportedly in talks with Google about a possible investment for a 5% stake.