KKR to invest US$1.5 billion in Reliance Industries' Jio Platforms, its biggest deal in Asia

KKR & Co Inc will invest US$1.5 billion in Reliance Industries’ Jio Platforms, its biggest investment in Asia to date and bringing the amount of new funds raised by the Indian digital company this month to a massive US$10 billion.

Jio Platforms, which houses movie, music apps and telecoms venture Jio Infocomm, has now sold a combined stake of just over 17 per cent in five fundraising deals led by Facebook Inc, which spent US$5.7 billion to take 9.99 per cent.

The deals highlight Jio Platforms’ potential to become the dominant player in India’s digital economy. The telecoms unit has already decimated several rivals with cutthroat pricing, while it can count on Reliance’s retail network to expand e-commerce. It is also working on connected cars, security systems and smart homes.

KKR’s purchase of a 2.32 per cent stake for 113.67 billion rupees, pegs Jio Platforms’ equity value at roughly US$65 billion, making it India’s second most valuable stand-alone tech firm after IT services company Tata Consultancy Services.

“We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team,” Henry Kravis, co-founder and co-CEO of the US buyout firm, said in a statement on Friday.