All businesses got affected in Covid-19, but Jio earns 78 thousand crores in one month

The impact of COVID-19 outbreak, which has claimed more than 5.1 million lives globally, is being felt far and wide — from Wuhan to Washington and beyond. The global market continues to slide amid worldwide panic over the novel coronavirus. 

The effect of coronavirus on multinational companies has been unprecedented with many of them have suffered a huge loss. While several companies have temporarily suspended their manufacturing, many have halted their production except for essential items.

However, the crisis has brought a key opportunity for Reliance Jio. All businesses got affected during the coronavirus lockdown, but Jio has earned a whopping Rs 78,562 Crore from five investors in just one month. Global tech giants like Facebook, Silver Lake, Vista EP and General Atlantic have made a huge investment to buy a minority stake in Mukesh Ambani’s Reliance Jio, now KKR (Kohlberg Kravis Roberts & Co.) has announced that it will be investing ₹11,367 crores for a 2.32% stake in Jio Platforms.

After investments from tech giants, Mukesh Ambani has now become the richest person in Asia with a net worth of $52.6 billion. The top business magnate Mukesh Ambani retained the top spot in the Indian billionaires’ list.

Earlier, global tech giant Facebook made a whopping investment of $5.7 billion to buy a minority stake in Mukesh Ambani’s Reliance Jio. Facebook’s investment in Jio’s platforms now brings its valuation at Rs 4.62 lakh crore. Later, American private equity firm Silver Lake has invested a mind-boggling Rs 5,655.75 crore in Mukesh Ambani-owned Reliance Industries’ Jio Platforms.

It should be noted that the investment by Silver Lake values Mukesh Ambani’s Jio Platforms at an equity value of Rs 4.9 trillion and an enterprise value of Rs 5.15 trillion which represents a 12.5% premium on the equity valuation of the Facebook investment announced on April 22, 2020, Reliance Industries added in a statement.

After US giants Facebook and Silver Lake to invest Rs 43,574 crore and Rs 5656 crore respectively, Vista Equity Partners — another firm from the US made a big announcement that it will be investing a whopping amount of Rs 11,367 crore Reliance’s Jio Platforms with an enormous stake of 2.32%.

On May 18, General Atlantic invested a mind-boggling Rs 6,598 crore in Mukesh Ambani-owned Reliance Industries’ Jio Platforms with an enormous stake of 1.34%. General Atlantic is known to have backed tech brands like AirBnb, Bytedance, Facebook and others.

The most recent one on the list is KKR or Kohlberg Kravis Roberts & Co. who has announced to invest Rs 11,367 crores in Jio Platforms for a 2.32 percent stake. This is also KKR’s largest investment in Asia.

With these massive investments from US firms, Jio Platforms has received investments of up to Rs 78,562 crores. As per company claims, more such investments are expected to be made in the coming few months.

Writer, historian, and activist Dharam Sikarwar is a very active author The Youth. He writes on national and international issues, environment, politics. He is an avid book reader as well.