American private-equity firm Silver Lake Partners has invested INR 5,655.75 crore (around $750 million) in Mukesh Ambani-led Reliance Industries Limited (RIL) subsidiary, Jio Platforms Ltd. This investment brings Jio's valuation at INR 4.90 lakh crore and RIL's valuation at INR 5.15 lakh crore.
This deal comes just after the Facebook's INR 43,574 crore ($5.7 billion) investment in Jio Platform Ltd. Silver Lake's investment will help RIL to reduce its debts, which was taken for the expansion of Jio, including $40 million for the Jio Platform launching in 2016. The debt incurs RIL's other business expansion also, as RIL is the biggest retail player in India, having a series of consumer-facing expansively growing businesses such as e-commerce and grocery.
On 30th April's RIL's quarterly and yearly regulatory filing, it has committed that Reliance Industries Ltd. will achieve zero net debt status before March 2021. Besides, the giant also announced that alongside Facebook, RIL also has immense investment from its financial and strategic investors. In the coming months, RIL will also announce some similar-sized investment.
In 1999, Dave Roux, Jim Davidson, Roger McNamee, and Glenn Hutchins, stabilized Silver Lake Partners as a private equity firm, focuses explicitly on investment and buyouts in growing technology companies. Presently, Silver Lake is a global leader in technology investing and has invested more than $43 billion in combined assets. It has a team of nearly 100 investment and operating professionals located across the globe.
Silver Lake has made one of the most successful private equity exits in history with the deal of Skype for $8.5 billion to Microsoft in 2011. In 2013, it had acquired PC maker Dell Inc along with its founder Michael Dell. Alongside this, its portfolio includes AirBnb, Twitter, Motorola Solutions, Alibaba Group, Ant Financial, City Football Group, and Didi Chuxing. Silver Lakes' investment portfolio generates a revenue of over $204 billion annually.
On this occasion, Silver Lake co-chief executive and managing partner Egon Durban said, Jio Platforms is one of the most remarkable companies in the world, led by an extremely strong entrepreneurial management team who are actualizing a bold vision. We are pleased to have been invited to partner with Reliance and Jio to help in Jio's mission.
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