Abu Dhabi-based investment sovereign fund Mubadala Investment will acquire a 1.85 percent stake in India’s Reliance Jio in a deal worth $1.21 billion, the media reported.
So far, Reliance has sold a combined 19 percent interest in its Jio platform, Mubadala being the latest addition.
Launched in 2016, Reliance Jio has established itself as a telecom giant in India in a short spell due to its competitive pricing strategy. Backed by multibillionaire Mukesh Ambani, Reliance Jio disrupted the Indian telecom sector which led to many telcos exiting the market with Vodafone on the brink of shutting down its business in India.
In the month of April, Facebook bought a 10 percent stake in Jio Platforms for around $5.7 billion. The deal follows Facebook’s decision to launch a payment feature for WhatsApp in India.
According to Facebook, it will work closely with the Jio brand and provide innovative ways for businesses in India to help boost its digital economy.
The deal between Facebook and Jio will most likely see JioMart, Jio’s small business initiative, and WhatsApp coming together, to connect small and medium-sized enterprises(SMEs) in India.
Last month’s media reports suggested that Microsoft is mulling an investment of around $2 billion in Reliance Jio.
According to a Mint report, which cited sources, Microsoft is planning to acquire more than 2.5 percent stake in Jio Platforms for $2 billion. However, the deal was said to be in the early stages and many details are yet to be finalised.
US-based private equity firm General Atlantic also invested $873 million Reliance Jio. The deal saw General Atlantic acquire a 1.3 percent stake in Jio.