Intel Capital will invest ₹1,894.50 crore (US$250 million) in Jio Platforms, Reliance announced Friday morning. The company is the chipmaker Intel’s investment arm. The investment will give Intel Capital a 0.39% equity stake. This takes the total investment amount that Jio Platforms has received over the last months, starting with Facebook, to ₹117,588.45 crore (US$15.74 billion). On June 25, the Competition Commission of India approved Facebook’s US$5.7 billion (Rs 43,574 crore) investment in Jio Platforms to pick up a 9.99% stake.
These are now all of Jio Platforms’s investors:
|Investor [Stake%]||Amount (₹)|
|Facebook [9.9%]||43,574 crore (US$5.7 billion)|
|Silver Lake (1, 2) [2.08%]||10,202.55 crore (US$1.34 billion)|
|Vista [2.32%]||11,367 crore (US$1.5 billion)|
|General Atlantic [1.34%]||6,598.38 crore (US$870 million)|
|KKR & Co. Ltd. [2.32%]||11,367 crore (US$1.5 billion)|
|Mubadala [1.85%]||9,093.60 crore (US$1.2 billion)|
|Abu Dhabi Investment Authority [1.16%]||5,683 crore (US$747 million)|
|TPG Capital [0.93%]||4,546.80 crore (US$600 million)|
|L Catterton [0.39%]||1,894.50 crore (US$250 million)|
|Public Investment Fund [2.32%]||11,367 crore (US$1.5 billion)|
|Intel Capital [0.39%]||1,894.50 crore (US$250 million)|
Intel Capital now accounts for 1.6% of external investment into Jio Platforms:
- Increased focus on telecom and B2C: Reliance is preparing to sell off a significant oil and petrochemicals wing, worth tens of billions of dollars. Now that telecom and home delivery are among the few industries which are likely to survive the throes of this pandemic, the company’s focus on telecom is likely to intensify. With its own $21 billion infusion into Jio Platforms and Facebook’s capital, the company is likely to double down on these businesses. Its existing retail network and size will help it scale.
- Will Jio deliver? As JioMart pilots in Maharashtra, Jio’s integration with WhatsApp will determine the shape of things to come. Under normal circumstances, JioMart would be a calculated risk with all the competition in place. But Jio’s resources and a sharp uptick in preference for home-delivered groceries should give Jio a solid opportunity to make a mark here, and make it fast; during its earnings call, the company said it would accelerate JioMart’s deployment in the coming months. What’s more, groceries have driven Reliance Retail’s growth in the past quarter (with year-over-year growth of 107%), so home delivery should boost those revenues further.
Correction (July 8): The table in a previous version of this article incorrectly mentioned the Intel investment’s value as US$1.5 billion. We regret the error.