Vista Equity Partners Buying 2.32% Stake In Reliance Jio For Rs. 11, 237 Crore

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Vista Equity Partners has announced that it is investing in Reliance Jio. The US-based private equity firm is buying a 2.32 percent stake in Jio platforms, with an investment of Rs. 11, 237 crore. This is the third time in two weeks Reliance Jio is selling its stake to the US firm. However, the transaction requires regulatory approvals.

Vista Equity Partners Buying 2.32% Stake In Reliance Jio

 

"This investment values Jio Platforms at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore. Jio Platforms has now raised Rs. 60,596.37 crore from leading technology investors in less than three weeks," Reliance Jio said.

Vista will become the third investor in the Jio platform after Facebook and Silver Lake where the former is planning to Rs. 43,574 crore for 9.99 percent stake, while the latter is buying 1.15 percent for Rs. 5,655.75 crore.

For the unaware, Vista is a tech-focused company, which is investing in enterprise software for the last 20 years. The company is also operating in India, with 13,000 employees. Furthermore, it is also expected that the Vista investment will help Jio to expand its digital platform.

Reliance Jio Investing In Digital Platforms

On the other hand, Jio has also highlighted that it has built Cloud and Edge Computing, Big Data Analytics, AI, IoT, AR, and Mixed Reality, and Blockchain. The company has also developed Smart devices and broadband connectivity. It is worth mentioning that Reliance Jio has 388 customers in the country, and it is the only telecom operator who is making a profit.

Recently, Jio had posted a 177 percent jump in the fourth quarter of the last financial year. In addition, Jio has captured 32 percent market share in the telecom market, which means this deal will increase its market share and its reach in digital platforms.

 

Apart from that, this investment will help Jio to establish itself as a tech-focused company. However, it is still struggling to raise its average revenue per user against Airtel, as the former has managed to achieve only Rs. 130 in the Q4 2020. But still, other operators are facing a tough time due to brutal price war and the AGR issue, while Jio has cleared all AGR amount and these stake selling deal will reduce its debt in the near future.

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