Breaking the news over the weekend, the United Arab Emirates’ Mubadala was confirmed to be Jio’s sixth investor on 5 June when it took a 1.85% equity stake for $1.2 billion. Sunday brought confirmation of a second deal from the UAE, this time with the Abu Dhabi Investment Authority (ADIA), one of the world’s biggest sovereign wealth funds according to Reuters. It took a 1.16% stake in the company for $750 million.
Investors now own 20.48% of the company, and Jio Platforms has raised around $12.3 billion.
Investor | Stake | US dollar value of investment at time of confirmation |
9.99% | $5.7 billion | |
1.5% | $746.8 million | |
2.32% | $1.5 billion | |
General Atlantic | 1.34% | $870 million |
| KKR (Asia division) | 2.32% | $1.5 billion |
Abu Dhabi Investment Authority | 1.16% | $750 million |
Mubadala | 1.85% | $1.2 billion |
Both Mubadala and ADIA are highly diversified with interests in energy, mining, oil and petroleum, real estate, infrastructure and government bonds.
Mukesh Ambani, chairman and MD of Reliance Industries, said: “I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential.”
Created more than 40 years ago to diversify the economy of Abu Dhabi (pictured) from its reliance on oil, ADIA today has interests in industry verticals and emerging markets, particularly those the UAE has economic and political ties with – for example it has invested heavily in China since 1992.
The UAE has a strong relationship with India and the balance of trade volume alone is predicted to reach values of $100 billion this year, up from $57 billion in January 2019. Most recently, ADIA invested $145 million in a mall project in India constructed by Phoenix Group in Hyderabad.
Elsewhere, in 2019 ADIA was involved in talks to buy a stake in Saudi Aramco and, through its subsidiary Luxinva, entered into a consortium with global investment firm EQT to acquire Nestlé Skin Health.
Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA, said: “Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socio-economic developments and the transformative effects of technology on the way people live and work.
“The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution. Our investment in Jio is a further demonstration of ADIA’s ability to draw on deep regional and sector expertise to invest globally in market leading companies and alongside proven partners,” Aldhaheri added.
With a similar remit, Mubadala Investment Company was created in 2017, through a merger of similar entities, and today the company has investments in 50 countries. In March 2020 it invested $2.25 billion in Alphabet subsidiary Waymo.
Since 2008, Mubadala CEO Khaldoon Al Mubarak has also served as the chairman of Manchester City Football Club, following its acquisition by Abu Dhabi royal family member and minister of presidential affairs, Sheikh Mansour bin Zayed bin Sultan bin Zayed bin Khalifa Al Nahyan.
Ambani said: “I am delighted that Mubadala, one of the most astute and transformational global growth investors has decided to partner us in our journey to propel India’s digital growth towards becoming a leading DIGITAL NATION in the world. Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy. We look forward to benefitting from Mubadala’s experience and insights from supporting growth journeys across the world.”
Al Mubarak added: “We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to address critical challenges and unlock new opportunities. We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India's digital growth journey. With Jio’s network of investors and partners, we believe that the platform company will further the development of the digital economy.”
