Vista Equity Partners to Invest Rs 11,367 Crore in Jio Platforms for 2.32% Stake

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May 12, 2020

Private equity firm Vista Equity Partners will invest Rs 11,367 crore in Jio Platforms for a 2.32% stake, the third deal after Facebook and Silver Lake’s share acquisition plans over the last two weeks.

“This investment values Jio Platforms at an equity value of Rs4.91 lakh crore and an enterprise value of Rs5.16 lakh crore,” Reliance Industries said in a statement on Friday. (ET Telecom, May 8)

Tarun Pathak's key takeaways:

  • Some would argue these valuations look expensive, but they bet on a certain timeline and scale, with super apps like WeChat highlighting the importance of the latter.  
  • Enabling Jio to piggyback on WhatsApp brings immediate consumer scale, the missing piece even for Jio, which enjoys user numbers in the hundreds of millions on several of its apps. 
  • Connecting Kiranas (mom & pops) to consumers is just the first step. An integrated WhatsApp and more cash gives Jio the freedom to make acquisitions (like Saavn) or partner in areas where it does not have a strong presence.
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May 12, 2020

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