US equity firm KKR has just announced that it will invest $1.5 billion in Reliance Jio Platforms. This announcement comes just weeks after the Facebook and Jio Platforms deal. As part of the investment, KKR will purchase a 2.32 percent stake in Mukesh Ambani’s Reliance Industries subsidiary. Beyond KKR, companies including Facebook, Silver Lake, Vista Equity Partners, and General Atlantic have already made similar deals. It is worth noting that KKR has made investments in multiple technology companies in the past. Some of the names include ByteDance and GoJek. Let’s check out the details regarding this new Reliance Jio Platforms deal here. Also Read - Google to rival Amazon, JioMart with its new program
Reliance Jio Platforms investment deal with KKR; details
According to a report from TechCrunch, Jio Platforms has raised about $10.35 billion in the last 30 days. The company sold about 17 percent of its stake to foreign investors to earn this amount. Reliance Industries has invested $30 billion to create Jio Platforms. As part of the report, Reliance is looking to make use of the global platform that KKR has created. The company will likely use the “industry knowledge and operational expertise to further grow Jio.” Most of the investments in Jio Platforms have come from companies that want a larger pie of the Indian market. Also Read - What is Jio Platforms and why investors are pouring money in it
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For some context, India has emerged as the second-largest internet market on the planet. Most technology companies are trying their best to gain users in a population of 1.3 billion. Companies including Google, Amazon, Facebook, Microsoft, Xiaomi, and more consider India as one of their most important markets. Also Read - Reliance Jio new Rs 999 plan gives 3GB/day for 84 days to customers working from home
Moving to Reliance Jio, the telecom operator has gain about 388 million subscribers in less than four years. The company has managed to transform the telecom industry with its cut-throat rates, and free voice calls. It has pushed other telecom operators to revise their rates, consolidate, or leave the arena. Jio Platforms is the subsidiary that operates Jio Infocomm, the telecom company also known as Jio. The company has already pushed in multiple verticals including on-demand live TV, digital payments, broadband, music streaming, and cheap smartphones.