Reliance Jio bags sixth investment in six weeks; Abu Dhabi's Mubadala with $1.2 billion is the next in line.

Abu Dhabi sovereign fund Mubadala Investment Company will inject Rs 9,093.6 crore in Jio Platforms. This is in exchange for 1.85 per cent ownership. This is the sixth investment in the RIL digital unit in as many weeks. Reliance Jio has been an irresistible lodestar for some of the world’s biggest tech companies and investors in its attempt to go debt-free.

Mubadala manages about $229 billion in assets, at an equity value of Rs 4.91 lakh crore. Further, its enterprise value of Rs 5.16 lakh crore. Their investment in Reliance Jio takes the total amount raised by Jio to an eye-popping Rs 87,655.35 crore. The company has also sold a total stake of 18.97 per cent in six massive fundraising deals.

Mukesh Ambani, chairman and managing director of Reliance Industries (RIL), said he is happy that Mubadala will invest in the company. He said, "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."

Khaldoon Al Mubarak is the managing director and group CEO of Mubadala Investment Company. He stated that his company is committed to investing in, and actively working with, high-growth companies that are pioneering technologies to address critical challenges and unlock new opportunities. He added, “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."

How will it benefit Reliance Jio?

The deals underline the status of Jio Platforms as a tech powerhouse. It further backs the ability of the company to dominate India’s booming digital economy. Jio Platforms has made significant investments across its digital ecosystem. Jio has leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.

The interest in Jio Platforms highlights its potential to become the dominant player in India's digital economy. The telecoms unit has already decimated several rivals with cut-throat pricing. Further, it is counting on Reliance's retail network to expand into e-commerce. Jio Infocomm is India’s biggest telecom player, amassing more than 388 million subscribers since its launch in late 2016.

About Mubadala

Mubadala is billed as the second-biggest state investor after Abu Dhabi Investment Authority. It has more than 50 businesses and investments in more than 50 countries. The company also stated that they typically invest in enterprises that create lasting value and positive economic and social impact in communities at home and overseas.

Its portfolio companies include giants in aerospace, agribusiness, ICT, semiconductors, metals and mining, pharmaceutical and medical technology, renewable energy and utilities. It also manages diverse financial holdings.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.