Second deal in a day for Jio Platforms: L Catterton to invest Rs 1894.5 cr

L Catterton’s investment will translate into a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis
In its second major deal announcement on Saturday, Mukesh Ambani-promoted Reliance Industries Ltd (RIL) said consumer-focused private equity firm L Catterton was making an investment of Rs 1,894.50 crore in its digital services arm Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion.

 

L Catterton’s investment will translate into a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis.

 

Earlier in the day, RIL had announced the sale of 0.93 per cent equity stake in Jio Platforms to global alternative asset firm TPG on a fully diluted basis for Rs 4,546.8 cr. That deal, RIL said, valued Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion.

 

With the two investments announced on Saturday, Jio Platforms has raised a total of Rs 104,326.95 crore in 10 deals with leading global investors – Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton – since April 22.

 

Jio Platforms, which at present has more than 388 million subscribers across India, has made significant investments across its digital ecosystem of technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.

 

Founded in 1989, L Catterton has a 30-year track record of leveraging its operational expertise, deep sector insights, and global network of resources, said RIL in a press statement. “With its unique partnership with LVMH and Groupe Arnault, L Catterton had successfully invested in and helped build some of the most innovative brands at the forefront of the evolving consumer landscape, including Peloton, Vroom, ClassPass, Owndays, FabIndia, and more,” it added.

 

RIL Chairman and Managing Director Mukesh Ambani said: “I am delighted to welcome L Catterton as a partner in our journey to unleash the power of digital for India while providing a consumer experience that is among the best in the world. 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.”

Michael Chu, global co-CEO of L Catterton, said: “We look forward to partnering with Jio, which is uniquely positioned to execute on its vision and mission to transform the country and build a digital society for 1.3 billion Indians through its unmatched digital and technological capabilities.”



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