Intel Capital to pump in Rs 1,894.5 cr in Jio Platforms; 12th investment in 11 weeks

Intel Capital, investment arm of Intel Corporation, will invest Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Intel Capital's investment will translate into a 0.39% equity stake in Jio Platforms on a fully diluted basis. Intel Capital joins the list of marquee firms that have recently invested in Jio Platforms, taking the total investment amount to Rs 117,588.45 crore.

The companies that have already pumped in money in JPL for 25.09 per cent stake are Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton and Saudi Arabia-based Public Investment Fund.

"Intel Capital invests globally in innovative companies with a focus on disruptive technology areas like cloud computing, artificial intelligence and 5G - opportunities where Jio is also innovating and investing for growth," a company statement said. Intel has operated in India for more than two decades and employs thousands of employees in the country.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said Intel was a "true industry leader", which was working towards creating world-changing technology and innovations. "Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally. We are therefore excited to work together with Intel to advance India's capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians," he said.

Wendell Brooks, Intel Capital President, said the company was excited to help fuel digital transformation in India. "Jio Platforms' focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel's purpose of delivering breakthrough technology that enriches lives. We believe digital access and data can transform business and society for the better," he added.

JPL was created as a subsidiary of RIL in October last year to bring together all digital and mobility businesses under one roof. The new entity has become the parent of Reliance Jio Infocomm and applications like MyJio, JioTV, JioCinema, JioNews and JioSaavn, besides content-generation ventures. Thus, the operating company Reliance Jio became a step-down subsidiary of RIL.

For making JPL debt-free, the parent company has infused Rs 1.08 lakh crore in it. RIL wants to build JPL like Alibaba and Google, which claim high valuations in the stock markets. RIL has been using the cash flow from its flagship petroleum refining business to build the telecom and retail subsidiaries all these years. The Indian conglomerate has spent about Rs 4 lakh crore to build Reliance Jio.

Here's a timeline of investments in Jio Platforms so far:

• April 22: Facebook investment: The social media giant announced an investment of Rs 43,574 crore in Reliance Jio accounting for a 9.99% stake in the company's platforms.
• May 3: Silver Lake- The American private equity (PE) giant will pick a 1.15% stake in Reliance Jio with an investment of Rs 5,656 crore in its platforms.
• May 8: Vista Equity- The US-based private equity firm will pick a 2.32 per cent stake in RIL's Jio platforms for Rs 11,367 crore.
• May 17: General Atlantic- The New York-headquartered PE firm announced an investment of Rs 6,598 crore in Reliance Jio for a 1.34% stake.
• May 22: KKR- The US-based PE company will buy a 2.32% stake in Jio platforms for Rs 11,367 crore.
• June 5: Mubadala- The Abu Dhabi-based sovereign investor announced an equity infusion of Rs 9,093 in Reliance Jio on Friday in exchange for a 1.85% stake in the telecom arm of RIL.
• June 13: RIL on Saturday announced TPG will invest Rs 4,546.80 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is the ninth investment for the company in the last seven weeks.
• June 13: L Catterton, one of the world's largest consumer-focused private equity firms, will also invest Rs 1,894.50 crore in JPL. L Catterton's investment will translate into a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis.
• June 18: Saudi Arabia-based PIF decided to invest Rs 11,367 crore in JPL for a 2.32 per cent equity stake on a fully diluted basis, making it the 11th company to do so in around two months.
• July 3: Intel Capital, investment arm of Intel Corporation, decided to invest Rs 1,894.50 crore in JPL at an equity value of Rs 4.91 lakh crore.

Also read: Mukesh Ambani's youngest son Anant debuts in Jio Platforms as director