Jio Platforms

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Jio Platforms
TypeSubsidiary of Reliance Industries
Founded2019; 2 years ago (2019)
FounderMukesh Ambani
HeadquartersMumbai, Maharashtra,
Area served
India
Key people
Anant Ambani (Director)[1]
Products
Owners
  • Reliance Industries (67.03%)
  • Strategic investors (18.26%)
  • Private equity firms (9.38%)
  • Sovereign wealth funds (5.33%)
ParentReliance Industries
Subsidiaries
Websitewww.jio.com

Jio Platforms, is an Indian technology company and a subsidiary of Reliance Industries, headquartered in Mumbai, India. Established in 2019, Jio Platforms acts as a holding company for India's largest mobile network operator Jio and other digital businesses of Reliance.[2]

In May 2020, Jio Platforms was reported to be the fourth largest Indian company by market capitalization.[3] Since April 2020, Reliance Industries has raised 152,056 crore (US$21 billion) by selling 32.97% equity stake in Jio Platforms.[4]

History[edit]

In October 2019, Reliance Industries Limited (RIL) announced the creation of a wholly owned subsidiary for its digital businesses including Jio. In November 2019, the subsidiary was named Jio Platforms. The 1.08 trillion (US$15 billion) liability of Jio was transferred to RIL and in turn RIL received preferential shares of Jio Platforms.[5][6] According to some observers, the restructuring was done to keep the digital businesses of the group within a debt-free entity.[7]

In April 2020, Facebook acquired a 9.99% stake in Jio Platforms for 435.74 billion (US$6.1 billion).[8] According to this deal, while Jio Platforms retained 149.76 billion (US$2.1 billion), the parent company got the remaining 285.98 billion (US$4.0 billion) for redeeming the optionally convertible preference shares it held in the subsidiary.[7]

In May 2020, private equity firm Silver Lake Partners obtained a 1.15% stake with a 56.5575 billion (US$790 million) investment in the company.[9] But unlike the previous transaction, the entire investment in this case was retained by Jio Platforms.[7] General Atlantic then announced that it would invest 65.988 billion (US$930 million) in Jio Platforms for a 1.34% stake in the company.[10] American PE firm KKR acquired a 2.32% stake in Jio Platforms for 113.67 billion (US$1.6 billion).[11]

In June 2020, Emirati sovereign fund Mubadala confirmed that it would acquire a 1.85% stake in the company for 90.936 billion (US$1.3 billion).[12] Silver Lake increased its stake to 2.08% with an additional 45.47 billion (US$640 million) investment.[13] Abu Dhabi Investment Authority then bought a 1.16% stake in the company for 56.84 billion (US$800 million).[14] On 13 June, TPG Capital, an investment company, took stake in Jio platform of 0.93% worth 45.468 billion (US$640 million).[15]

Catterton also made an investment of 18.945 billion (US$270 million) for a 0.39% stake.[16]

In June 2020, Saudi Arabia's sovereign fund PIF confirmed that it would acquire a 2.32% stake in the company for 113.67 billion (US$1.6 billion).[17] In July 2020, Intel confirmed that it would acquire a 0.39% stake in the company for 1.89 billion (US$26 million).[18]

In July 2020, Qualcomm confirmed that it would acquire a 0.15% stake in the company for .730 billion (US$10 million).[19]

This was followed by Google purchase of 7.7% stake in the company for 337.37 billion (US$4.7 billion).[20]

Ownership[edit]

Company Equity Stake Company Owner Investor Portfolio
Reliance Industries 67.03% Mukesh Ambani Promoter
Jaadhu Holdings LLC[21] 9.99% Facebook, Inc. Strategic Investor
Google LLC 7.73% Alphabet, Inc. Strategic Investor
KKR & Co. Inc. 2.32% - Private Equity Firm
Vista Equity Partners[22] 2.32% - Private Equity Firm
Public Investment Fund of Saudi Arabia 2.32% Govt. of Saudi Arabia Sovereign Wealth Fund
SLP Redwood Co-Invest (DE), L.P. 2.08% Silver Lake[23] Private Equity Firm
SLP Redwood Holdings Pte. Ltd
Mubadala Investment Company PJSC 1.85% Govt. of UAE Sovereign Wealth Fund
General Atlantic Singapore[24] 1.34% General Atlantic Private Equity Firm
Abu Dhabi Investment Authority 1.16% Govt. of Abu Dhabi Sovereign Wealth Fund
TPG Capital 0.93% - Private Equity Firm
Intel Capital 0.39% Intel Corporation Strategic Investor
Interstellar Platform Holdings Pte. Ltd.[25] 0.39% L Catterton Private Equity Firm
Qualcomm, Inc. 0.15% - Strategic Investor
Total 100%

Businesses[edit]

Consumer Platforms[edit]

  • Jio, telecommunications and broadband services
  • Jio Apps
    • MyJio[26]
    • JioTV, live TV streaming app, launched on 5 September 2016
    • JioCinema, video-on-demand app[27]
    • JioSaavn, an online music streaming service[28]
    • JioChat, messaging app[29]
    • JioMeet, video-conferencing platform[30]
    • JioStore, app store for Jio STB
    • JioPages, web browser[31]
    • JioSwitch, file sharing app[32]
    • JioNews, newspaper and magazine app[33]
    • JioHome, mobile remote control for Jio set-top box[34]
    • JioGate, apartment security app[35]
    • JioCloud, cloud storage services[36]
    • JioSecurity, security app[37]
    • JioHealthHub, health companion[38]
    • JioPOS Lite, Jio recharge commission earning app[39]
    • JioGameslite, online gaming[40]
  • JioMoney, digital currency and payments services[41]
  • JioMart, online grocery delivery services (partnership with Reliance Retail)[42]

Enterprise Platforms[43][edit]

  • JioAttendance
  • JioMeet for Business
  • JioOnline - Online marketing tool
  • JioGST[44]

Acquisitions and investments[edit]

RIL has acquired or invested in several companies, which are now under Jio Platforms:[45]

Name Type Amount Stake Ref
Haptik AI-based conversational platform US$100 million[46] 87%
Embibe AI-based educational platform US$180 million 72.69%
Radisys[47] Telecommunication technology US$75 million 100%
Reverie language technologies Ltd Vernacular chatbot & Speech Technologies US$35 million 83.3%
Grab-a-Grub Delivery services US$30 million 83%
Fynd Analytics US$15 million 87%
EasyGov Citizen convenience services US$10 million 83%
Asteria Aerospace Drone technology US$3.3 million 51.78%
Netradyne AI services 37.4%
Tesseract Mixed Reality IN₹10.12 crore 92.7%
SankhyaSutra Labs Simulation Services 83%[48]
Vitalic Health (Netmeds, Tresara, and Dadha Pharma) Online Pharmacy US$83.2 million 60% [49]
C-Square Pharmaceutical technology platform 82% [50][51]
KareXpert Digital Healthcare Platform for Hospitals IN₹10crore [52]
Videonetics Video surveillance technology [53]
Covacsis Technologies IOT [54]
NEWJ Media IN₹5crore [55]

Valuation[edit]

In May 2020, the enterprise value of Jio Platforms was estimated to be 5.15 trillion (US$72 billion).[56] The company was also reported to be more valuable than all other businesses of RIL put together.[57] Its market capitalization put it fourth on the list of largest Indian companies, behind RIL (combined entity), Tata Consultancy Services and HDFC Bank.[3]

See also[edit]

References[edit]

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  2. ^ Kalyanaraman, Anand. "The financial engineering behind the Great Jio Fund-raise". Business Line. Retrieved 31 January 2021.
  3. ^ a b "RIL gains 4% after Vista Equity's investment in Jio Platforms: Know more about the deal". CNBC TV18. Retrieved 8 May 2020.
  4. ^ "Google to invest Rs 33,737 crore for a 7.7 per cent stake in Jio Platforms - The Economic Times". The Economic Times. Retrieved 15 July 2020.
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  10. ^ "General Atlantic to invest Rs 6,598.38 crore in Jio Platforms". The Economic Times. 18 May 2020. Retrieved 27 May 2020.
  11. ^ Tripathi, Dhirendra (22 May 2020). "KKR to buy 2.32% Jio Platforms stake for ₹11,367 crore". Livemint. Retrieved 27 May 2020.
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  33. ^ "Reliance Jio launches JioNews, a one-stop platform for newspapers, magazines". Hindustan Times. 1 May 2020. Retrieved 16 July 2020.
  34. ^ "Download Jio Home Mobile App for your home remote control". Youth Apps. 16 July 2020. Retrieved 16 July 2020.
  35. ^ "Jio to Launch Apartment Security Service Called Jio Gate, Official Apps Listed Online". Gadgets360. 16 July 2020. Retrieved 16 July 2020.
  36. ^ "What is Reliance Jio Cloud Storage in Hindi". Techno2hindi. 16 July 2020. Retrieved 16 July 2020.
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  38. ^ "Reliance Jio launches new medical and fitness app 'JioHealthHub' for the health conscious". India Today. 16 July 2020. Retrieved 16 July 2020.
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  42. ^ "JioMart app makes debut on Google Play Store for Android users". The Times of India. 18 July 2020. Retrieved 18 July 2020.
  43. ^ DelhiMarch 9, India Today Tech New; March 9, 2021UPDATED; Ist, 2021 18:19. "Jio launches special JioFiber Business plans for traders and companies, here are all pricing details". India Today. Retrieved 10 March 2021.CS1 maint: numeric names: authors list (link)
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  54. ^ Chanchani, Madhav. "Covacsis gets funds from Reliance Industries, Cisco venture capital arms". The Economic Times. Retrieved 10 March 2021.
  55. ^ Upadhyay, Harsh (7 September 2019). "Reliance invests Rs 5 Cr in text-based video media startup NEWJ". Entrackr. Retrieved 10 March 2021.
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External links[edit]