Jio Platforms takes another global investor on-board

Reliance Industries has made an announcement today of yet another investment it has received in its Jio platforms. Mubadala Investment Company, an Abu Dhabi-based sovereign investor, is set to invest Rs 9,093.60 crore in the company which will reflect a 1.85 per cent equity stake in Jio Platforms on a fully diluted basis.

During this year, Reliance Industries has already raised about Rs 87,655 crore for Jio Platforms, from various global entities. Mubadala is the latest addition to the list which includes Facebook, Vista Equity Partners, General Atlantic, Silver Lake and KKR.

Jio Platforms has over 388 million subscribers. It has displayed a significant growth of over 2x in revenue and EBITDA over the last two years.As per the presentation made by the company, India has the world's second-largest internet user base and is fast-growing. This knowledge is definitely of interest to many investors as there is still considerable growth potential with increasing data consumption and thereby, subsequent increase in ARPU. 

Reliance Industries, which predominantly was into energy, textiles, petrochemicals, and natural resources, has diversified and introduced new revenue streams such as retail and telecommunication, over the past couple of years. Thus, the consumer segment (retail and digital) is contributing about 35 per cent to the company EBITDA in FY20, compared to a mere 2 per cent in FY15.