L Catterton, TPG join PE backers of India's Jio Platforms

Reliance Industries, the parent of Jio Platforms, issued separate statements regarding the TPG Capital and L Catterton commitments - the former making the investment from its Asian, growth, and tech adjacency (TTAD) funds. In total, Jio Platforms is expected to receive over INR1 trillion ($13.75 billion) in capital from nine external investors who are set to collectively own 21.2% of the company. 

The investments represent the second biggest growth capital raising exercise involving an Asian technology company after Ant Financial's $14 billion Series C round, which valued the Chinese company at $150 billion. Reliance says Jio is valued at INR4.91 trillion ($65 billion). 

Founded in November last year, Jio Platforms is the parent of India's Reliance Jio Telecom, the country’s leading mobile carrier which claims to have more than 387.5 million subscribers. Reliance Industries has positioned Jio Platforms’ app ecosystem as a gateway to the internet for first-time users of mobile internet services. Other subsidiaries are working to expand the company’s presence in broadband services, cable television, and e-commerce.

It is expected that the company will offer a bundled package that would be accessible to Indians currently priced out from high-speed internet and streaming-related content services. At the same time, a network of Jio-branded convenience stores is expected to fulfill online orders on JioMart, the company’s daily goods-themed e-commerce platform, with inventory supplied by Jio-owned warehouses.

"I particularly look forward to gaining from L Catterton’s invaluable experience in creating consumer-centric businesses because technology and consumer experience need to work together to propel India to achieving digital leadership,” said Mukesh Ambani, chairman of Reliance Industries, in a statement. 

Last week, LiveMint indicated JioMart's operations appear to have hit a snag as the company does not have enough delivery personnel to fulfill online orders. Jio has said the suspension of operations in select JioMart stores was temporary. Last week, India officially came out of a 10-week nationwide lockdown to counter the COVID-19 outbreak but infections continue to climb in New Delhi and Mumbai, the country's major metropolitan hubs. 

Reuters has reported that Reliance plans to explore a public listing in the US next year with a target valuation of $90-95 billion. Reliance Industries, which mostly gets its revenue from oil-related activities, has INR3.36 trillion in outstanding debt. The company has declared an ambition to eliminate net debt by the end of the current financial year and raised INR531.2 billion in capital through a discounted rights issue last month.

In India, TPG is an investor in non-banking finance companies, an agrochemicals producer, pharmaceutical companies, home design portal Livspace and the holding company of BookMyShow, India's leading ticketing aggregator. Meanwhile, L Catterton has invested in Future Lifestyle Fashions and Indian restaurant operator Impresario Entertainment and Hospitality. 

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• Topics
• South Asia
• Expansion
• Technology
• TMT
• India
• TPG Capital
• L Catterton
• Reliance Strategic Business Ventures Limited