KKR-Reliance Jio Platforms deal: All you need to know about the US-based private equity firm

Reliance Industries Limited (RIL) and Jio Platforms Limited, India’s leading digital services platform, announced on Friday that US private equity fund, KKR will invest Rs 11,367 crore into Jio Platforms. This is Jio Platforms’ fifth major deal in the past month, after receiving investments from Facebook, Silver Lake, Vista, and General Atlantic. This is KKR’s largest investment in Asia and will translate into a 2.32 percent equity stake in Jio Platforms on a fully diluted basis. Headquartered in New York, KKR founded in 1976, has a long history of building leading global enterprises and successfully investing in businesses in the technology sector, including BMC Software, ByteDance and GoJek through its private equity and technology growth funds. [caption id=“attachment_4449265” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] Since inception, KKR has invested over $30 billion (total enterprise value) in tech companies, and today the firm’’s technology portfolio has more than 20 companies across the Technology, Media and Telecom sectors. In addition, India has been a key strategic market for KKR with a history of investing in the country since 2006. KKR is making the investment from its Asia private equity and growth technology funds. The transaction is subject to regulatory and other customary approvals. As 31 December 2019, the KKR has $218.4 billion assets under management. Mumbai-based KKR India Financial Services (“KIFS”) is KKR’s alternative credit business in the country.

Henry Kravis, Co-Founder and Co-CEO of KKR, said: “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next-generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution.” “We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific,” Kravis said. Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “I am delighted to welcome KKR, one of the world’’s most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians.” “KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We are looking forward to leveraging KKR’’s global platform, industry knowledge and operational expertise to further grow Jio,” Ambani said. Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers. Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain. (With inputs from agencies) (Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)