After Facebook, Silver Lake Intends on Investing $747M in India’s Jio Telecom Company

It hasn’t been even a week that Facebook became one of the major companies to invest in Jio, with a whopping amount that counts in Billions. Now, it’s Silver Lake who has decided to become one of the investors in India’s ever-growing telecom giant, the Jio. Facebook had invested almost $5.7 billion in the company and became the shareholder of almost 9.99% of the company. Silver Lake, on the other hand, intends to invest almost $747 million in the company.

The $747 million in Indian rupees will be equivalent to 56.56 billion, which will make the Silver Lake a partner of almost 1.15% of the stakes in the Jio, an Indian Telecom network. The total valuation of the investment will become $65 billion, and marking it at a 12.5% premium as implied by the value of the investment made by Facebook.

Silver Lake is Menlo Park-headquartered PE firm, and within a few years, the company has invested approximately $40 billion in combined assets and other committed capital. The number of companies in which it has invested goes more than a dozen. Some of the most important companies that it has invested in are Unity, Skype, Alibaba’s Ant Financial, Gartner, which is a consultancy firm, and lastly, Didi Chuxing, which is a Chinese ride-hailing company. All of these companies have received investment from Silver Lake within a span of just a few weeks.

Since the start of 2020, Silver Lake has invested in various companies such as Twitter, in which it invested almost $1 billion. Other companies that received investment from it were Airbnb, Service Max, and the Waymo.

Silver Lake is not new to investments in the Indian firm. In the year of 2013, it had an investment in a risk management software firm called Ekta, which was based on commodity trading in Bangalore. Hence Jio can be marked as the second investment in the Indian firm by Silver Lake.

It has not been many years since the Indian Telecom Giant ventured into the industry. It started in the year 2016 and, within four years, transformed itself as one of the leading telecom providers across the country. The Jio company became the first to provide a 4G data connection to its customers with no data caps for 6 months, and that too at a minimal price. Currently, the company has more than 400 million users all across the country and also provide data services with unlimited calls and messaging at a minimal rate.

On their decision to invest in the company, the co-chief executive and managing partner at Silver Lake stated that “Jio Platforms is one of the world’s most remarkable companies, led by an incredibly strong and entrepreneurial management team who are driving and actualizing a courageous vision. They have brought extraordinary engineering capabilities to bear on bringing the power of low-cost digital services to a mass consumer and small business population”.

He further added, “The market potential they are addressing is enormous, and we are honored and pleased to have been invited to partner with Mukesh Ambani and the team at Reliance and Jio to help further the Jio mission.”

The Jio company is slowly increasing its base. It has also come up with a music streaming app called JioSaavn, which is a collaboration between the Jio company and the already existing popular music app called Saavn.

While addressing the media on receiving an investment from Silver Lake, Mukesh Ambani stated, “Silver Lake has an outstanding record of being a valuable partner for leading technology companies globally. Silver Lake is one of the most respected voices in technology and finance. We are excited to leverage insights from their global technology relationships for the Indian Digital Society’s transformation”.

What more does Jio have under its hood, is still to be revealed. And whether Silver Lake will keep investing in some more companies is still unknown.

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Rosa Margaret

Rosa Margaret is a Senior Architect who plays a role of designing, planning and developing different projects for her firm. She is highly skilled in analyzing blueprints, sketches, and models for environmental and safety issues. She loves to do gardening in her free time which is quite evident in her exquisitely maintained backyard.

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