Left Menu
Development News Edition

Funding by General Atlantic, FB, others to position Jio as tech player not just telco: Analysts

PTI | New Delhi | Updated: 18-05-2020 17:29 IST | Created: 18-05-2020 17:29 IST
Funding by General Atlantic, FB, others to position Jio as tech player not just telco: Analysts

Recent investments by Facebook, General Atlantic, Vista and Silver Lake will re-position Jio as a major tech player rather than just a telecom service provider, analysts said on Monday. Reliance Industries has announced the sale of 1.34 per cent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore. The latest deal follows on the footsteps of other marquee investors: Facebook on April 22 announced it is picking up 9.99 per cent stake in Jio Platforms, the firm that houses Reliance Jio, for Rs 43,574 crore.

Within days of that deal, Silver Lake, the world's largest tech investor, bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore, and on May 8, the US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 11,367 crore. In a note on Monday, CLSA said the "investments position Jio as a growing technology player".

"These investments by General Atlantic, Vista, Silver Lake and Facebook should reposition Jio as a major tech player rather than just a telecom service provider. Jio Platforms houses RIL's digital business (telecom, Jio's apps, digital investments and tech capabilities)," it said. In a separate note, Centrum said that the "investments are racking up" and that investors bring diverse but complementary skill sets to Jio.

"With Facebook's core competence of mapping a very large user base's behaviour down to the last life decision they took and leveraging that to create a more targeted product/app offering, the experience of Vista in developing and helping grow start-ups who have specialised enterprise offerings in diverse business segments and of course the more traditional growth equity players Silver Lake and General Atlantic (investors in Twitter, Alibaba, Uber, Airbnb among others)," it observed. In the last 6-12 months, Reliance Industries has repeatedly laid out its gameplan for Jio, that is creating an all-encompassing digital platform to rival the best in the business, spanning mobility, enterprise, content and B2B (business to business) and B2C (business to consumer) e-commerce solutions, it said.

"The natural objective of creating this is also to aspire to the lofty valuations of the peer set Jio wants to be compared with -- the likes of Alphabet...Tencent...and partner/investor Facebook... We believe the partnerships/investments bring a series of highly credible and extremely useful partnerships to the fore and will help achieve this objective for Jio," Centrum added in its latest note..



Why COVID-19 is unstoppable in USA despite it being ranked at the top of GHS Index?

Several worst-hit countries such as Italy, France, Spain, the UK, Canada, and Russia have peaked COVID-19 cases in April. Almost all of them have gradually flattened the curve. However, the USA is setting new daily records of infections tha...

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...


Latest News

Prakash Jha's ‘Pareeksha’ to premiere on August 6 on ZEE5

Filmmaker Prakash Jhas directorial venture Pareeksha- The Final Test is set to premiere on August 6 on ZEE5, the streaming platform announced on Saturday. Written, produced and directed by Jha, Pareeksha.., billed as a ZEE5 Original, feat...

AIMIM chief takes COVID-19 test, asks people to get tested

Hyderabad, July 11 PTI AIMIM president Asaduddin Owaisi on Saturday said he got his antigen and RT-PCR reverse transcription polymerase chain reaction tests done for COVID-19 and that antigen test result was negative. He said the outcome of...

BJP trying to topple my govt but it is stable and will complete five-year term: Gehlot

Rajasthan Chief Minister Ashok Gehlot on Saturday accused the opposition BJP of trying to topple his government by offering his legislators large sums of money and said his administration is not just stable but will complete its five-year t...

Final exams unlikely for students of state-run universities in Bengal

Students of state-run colleges and universities in West Bengal might not have to sit for their final semester exams this year as vice-chancellors said the process of evaluation is almost over and there is no scope to incorporate the UGC gui...

Give Feedback