Sim card packets for Reliance Jio, the mobile network of Reliance Industries Ltd., are arranged for a photograph at a store in Mumbai, India, on Sunday, Jan. 19, 2020. Reliance Industries, India's biggest company by market value, posted a 13.5% jump in quarterly net income as growth in telecom and retail business helped outweigh a slump in petrochemical operations. Photographer: Dhiraj Singh/Bloomberg General Atlantic, the U.S. investment firm that helped fund Airbnb Inc. and Uber Technologies Inc., is discussing a potential investment of about $850 million to $950 million in Jio Platforms, the people said. The deal could be completed as soon as this month, though no agreement has been finalized and plans may change, the people said.
Any new investment into Jio Platforms will add to the $8 billion deal run that Ambani has sealed in recent weeks. Facebook Inc. in April agreed to pay $5.7 billion for a 10% stake in the digital unit, while Silver Lake Partners and Vista Equity Partners last week said they would invest about $2.25 billion in total.
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Investors are betting on Jio’s access to India’s huge consumer market, and its potential to shake up traditional industries in the country -- from retail to education and payments -- with its technology. India is the only major open Internet market where foreign technology giants such as Amazon.com.Inc., Walmart Inc. and Google’s parent Alphabet Inc. can compete for market share.
The string of investments from technology giants and private equity firms will go toward slashing debt at Reliance Industries, which is controlled by Ambani. The outside money also helps set a valuation for Jio, which until recently has been largely owned by the billionaire’s conglomerate.
Representatives for Reliance Industries and Saudi’s Public Investment Fund didn’t respond to requests for comment, while General Atlantic declined to comment.
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