Intel Jio Deal: Intel Capital to Invest Rs. 1,894.50 Crores in Jio Platforms
Intel-Jio Deal: Intel Capital to Invest Rs. 1,894.50 Crores in Jio Platforms
This is the twelfth investment in Jio Platforms within eleven weeks (since 22nd April 2020).
By Reuters | Updated: 3 July 2020 12:36 IST
Intel will invest Rs. 1,894.50 crores in Reliance Jio
Reliance Jio has raised Rs. 1,17,588.45 crores since April 22
The company has secured the investments in 12 rounds of funding
Intel’s investment is at a similar valuation to the other investments
Intel's investment arm will pay Rs. 1,894.50 crores (roughly $255 million) for a small stake in Reliance Industries' digital unit Jio Platforms, the latest in a slew of share sales that have helped the Indian conglomerate pay down debt. Reliance has now sold just over a quarter of Jio Platforms, the unit that houses its telecoms venture Jio Infocomm, and its music and movie apps, raising $15.8 billion (Rs. 1,17,588.45 crores) from investors including Facebook and KKR.
The deals highlight Jio Platforms' potential to become the dominant player in India's digital economy.
The telecoms unit has already decimated several rivals with cut-throat pricing, while Reliance is also using Jio Platforms' technology in its new e-commerce venture that seeks to rival Amazon and Walmart's Flipkart. Jio Platforms is also working on connected cars, security systems and smart homes.
The sale of the 0.39 percent stake for Rs. 1,894.50 crores gives Jio Platforms an enterprise value of Rs. 5.16 lakh crores ($69 billion), Reliance said in a statement.
The deals and a $7 billion (roughly Rs. 52,416 crores) share sale have helped Reliance become net-debt free, the company said last month. It had previously planned to rid itself of net debt of just over $21 billion (roughly Rs. 1.57 lakh crores) by the year end.
The oil-to-retail conglomerate, controlled by India's richest man Mukesh Ambani, plans to wrap up most of its private fundraising for Jio Platforms by the third quarter of 2020 and then explore a potential public listing in the United States in 2021, a source familiar with matter has said.