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Jio Platforms – Silver Lake Deal Analysis: A Step Closer to Digital Economy 2.0

US private equity firm Silver Lake announced an investment of USD 747 million (INR 5,655.75 crore) in Jio Platforms for a 1.15% stake on 4th May 2020, striking a deal with Jio less than two weeks after Facebook’s investment into Jio Platforms. The deal values Jio at $65 billion – a 12.5% premium to the value indicated by Facebook.

Silver Lake is a globally respected private equity firm with investments in technology companies, both large established firms, as well as, startups, with USD 40 billion in total AUM. Recent investments in E-commerce and financial technology include the Alibaba Group, Fanatics, Inc., Ant Financial, Credit Karma, and Blackhawk Network, among others.

The deal comes at a time when Reliance is working to pare down the group’s debts. In the midst of a pandemic, this deal coming into India stands testimony to the potential opportunities with data-led businesses in India.

What to expect for the Indian economy?

  • This deal can transform the retail market by significantly boosting digital consumer reach and monetization of transactional data and insights.
  • With this latest funding support, Jio Platforms will trigger growth of and series of large-ticket investments in consumer-experience digitization in India.
  • Low-cost digital services using social engagement tools will bring millions of suppliers in direct interaction with their target end-consumer base, enabling hyper-localization on the basis of cultural and behavioral consumption patterns.
  • Consumer-experience digitization will further create an impetus for emerging Deeptech solutions to converge, bringing forth opportunities that combine AI, Blockchain, IoT, AR/VR, and Big data at a massive scale to provide out-of-the-box digital experiences to Indians.
  • More such digital tech deals have the potential to push as-a-service and a digital as the foundation to drive India’s growth into the Techade to 2030.

References:

https://economictimes.indiatimes.com/

https://www.moneycontrol.com/news/business

https://www.techradar.com/in

https://brandequity.economictimes.indiatimes.com

Nasscom Research

 

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1 Comment

  1. Dear Friends
    A simple plan to bring the country’s economy back in track, remove corruption in compliance as well as finish the black economy , get infrastructure working and most importantly revive our industry.

    1. Income tax holiday for the next 30 years.

    2. 0.3 % banking transaction tax on payments not on receipts(payments are cost)

    3. Lands in all the airports and railway junction around the country is given for companies who want to move to India or even local companies.(The land is given On a fixed lease of 200 per year for 15 years for urban areas and 50/- per Year for rural areas). No land hoarding allowed.

    There will be checks which can be put in place to ensure that at least 99% of people cannot break the system and whoever does once caught will be publicly shamed as traitor to the people of India.

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