Even after getting the massive investment from Facebook, Jio now seems to be no stopping. This month has been a blessing for Jio as other major players such as KKR, Silver Lake, and others also invested in the company. Now, the latest report suggests that Jio’s long-standing partner Microsoft is also looking forward to investing more than $2 billion in the company and bite a good piece of the pie.
As per a recent report from Hindustan Times, Microsoft is looking forward to a $2 billion investment in Jio. This would be around a 2.5% stake in the company. Currently, Jio’s valuation is around $65 billion. If this investment finally happens, then it will be the sixth investment in Reliance Jio within a span of two months only. The thing to be here is that all of the investments are from American firms.
The sources also suggest that the discussions are only in early stages now and the details are yet to be finalized. But this will be a very good blessing to Jio Platforms as this will bring the company one step closer to its overseas IPO goals. Reports also suggest that Mukesh Ambani is apparently preparing for a public offering in the USA in the coming 12 to 24 months.
Reliance Jio and Microsoft already have an ongoing partnership. Jio’s data is currently hosted on Microsoft’s cloud platform Azure in India. SMBs in the country are also promised free Jio connectivity and Azure, Microsoft 365 services.
Apart from Microsoft, Saudi Arabia’s sovereign wealth fund also might take a small stake in Jio. Now if all deals are done and dusted then Jio Platforms will have raised around $12.5 billion. This will definitely enable the telecom giant Jio to reduce its debt to a great extent and move closer to its goal of a net debt-free future. Currently, Reliance Jio has around 400 million subscribers in India which is the largest among the four players in the market.
With time, Reliance Jio has expanded beyond the telecom industry and now offers several other services such as Jio Fiber (broadband), the JioMart (online grocery delivery), AJio (online fashion store), Jio Cinema, JioTV, and LYF-branded smartphones.
Source: Hindustan Times