US private equity firm Vista buys 2.3% stake in India's Jio Platforms for $1.5 billion

US-based Vista Equity is now the largest investor in Jio Platforms behind Reliance Industries and Facebook.

US private equity firm Vista Equity Partners has has bought a 2.3 percent stake in Indian billionaire Mukesh Ambani's telecom venture for $1.5 billion. The Reliance conglomerate announced the investment in Jio Platforms, the unit that houses Reliance's telecoms venture Jio Infocomm, on Friday.

This investment values Jio Platforms at an equity value of ₹ 4.91 lakh crore (nearly $75 billion) and an enterprise value of ₹ 5.16 lakh crore. Vista's investment will translate into a 2.32 percent equity stake in Jio Platforms on a fully diluted basis, making Vista the largest investor in Jio Platforms behind Reliance Industries and Facebook. Jio Platforms has now raised ₹ 60,596.37 crore from leading technology investors in less than three weeks.

$57 billion in cumulative capital commitments

Vista, a leading global investment firm, is focused on empowering and growing enterprise software, data and technology enabled companies that are reinventing industries and catalyzing change. Vista has more than $57 billion in cumulative capital commitments and its global network of companies collectively represent the 5th largest enterprise software company in the world.

With 20 years of investing experience exclusively in enterprise software, Vista believes the transformative power of technology is the key to an even better future — a healthier planet, a smarter economy, a diverse and inclusive community, and a broader path to prosperity. Currently, Vista portfolio companies have a significant presence in India with over 13,000 employees.

Reliance Jio pokestop
A sample of Reliance Jio pokestop in India

Exclusive focus on enterprise software, data and technology

"We believe in the potential of the Digital Society that Jio is building for India. Mukesh's vision as a global pioneer, alongside Jio's world-class leadership team, have built a platform to scale and advance the data revolution it started. We are thrilled to join Jio Platforms to deliver exponential growth in connectivity across India, providing modern consumer, small business and enterprise software to fuel the future of one of the world's fastest growing digital economies," Robert F. Smith, Founder, Chairman and CEO of Vista, said.

This investment by Vista exclusively focuses on enterprise software, data and technology enabled companies.

Jio Platforms is a wholly-owned subsidiary of Reliance Industries Limited. Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.

Jio's vision is to enable a Digital India for 1.3 billion people and businesses throughout India, especially small merchants, micro-businesses and farmers. Jio has brought transformational changes in the Indian digital services space and propelled India on the path towards becoming a global technology leader and among the leading digital economies in the world.

Mukesh Ambani
Reliance Industries Ltd (RIL) Chairman Mukesh Ambani. (File Photo: IANS) IANS

"I am delighted to welcome Vista, one of the world's marquee tech investors globally as a valued partner. Like our other partners, Vista also shares with us the same vision of continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians," Ambani, Chairman and Managing Director of Reliance Industries Ltd, said.

The transaction is subject to regulatory and other customary approvals. Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Kirkland & Ellis LLP and Shardul Amarchand Mangaldas & Co served as legal counsels to Vista.

This article was first published on May 9, 2020