Jio Platforms attracts another $850m from TPG, L Catterton

Jio Platforms, the digital services unit of India’s Reliance Industries, announced that it will be receiving US$600 million and US$250 million from US-based investment company TPG Capital and private equity firm L Catterton, respectively.

Photo credit: Jim Carter

TPG will take a 0.93% equity stake in Jio while L Catterton’s investment will translate into a 0.39% stake on a fully diluted basis.

The two companies are the latest Jio investors, joining Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, and the Abu Dhabi Investment Authority. The digital services firm has now raised a total of US$13.7 billion since April.

With more than US$79 billion of assets under management, TPG’s portfolio companies include Airbnb, Uber, and Spotify, among others.

Meanwhile, LVMH-backed L Catterton focuses on investing in consumer-focused brands with around US$20 billion of equity capital across seven fund strategies. Its portfolio includes exercise equipment and media company Peloton, online used cars platform Vroom, fitness classes provider ClassPass, Japanese eyewear chain Owndays, and Indian store FabIndia, among others.

“I particularly look forward to gaining from L Catterton’s invaluable experience in creating consumer-centric businesses, because technology and consumer experience need to work together to propel India to achieving digital leadership,” Mukesh Ambani, chairman and managing director of Reliance Industries, said.

Jio Platforms aims to enable a digital India for 1.3 billion people and businesses across the country, including small merchants, microbusinesses, and farmers.

According to a report, India is the second-largest online market behind China with over 560 million internet users, and it’s expected to reach 666 million by 2023. However, internet penetration in the country was only 48% as of last year, compared to those of other developing economies such as Thailand (73%), Vietnam (71%), and the Philippines (67%).

“As such, it’s fair to say that the digital revolution has only begun in India, and there’s still much scope for internet penetration to increase from here,” the report said.