5 Reasons - Why Companies are Investing in JIO platforms


Facebook, Silver Lake, Vista and General Atlantic have announced investments in Jio Platform.

22nd April - Facebook investment in Jio platforms,

3rd May - Silver Lake investment in JIO,

8th May - Vista investment in Jio,

17th May - general Atlantic investing in Jio,

22nd May - KKR investment in Jio and recently

3rd July - Intel investment in Jio


Jio has raised a total investment of 117,588.45 crores or US$16 billion.

It all started with Facebook making a strategic investment in Jio of ₹43,574 crores ($5.7 billion) for a 9.99%-stake in the firm.

On July 3 US semiconductor giant Intel planned to invest Rs 1,894.5 crore in Jio Platforms for a 0.39% stake. And RIL has sold 25.09% stake in Jio Platforms to these investors.


What does Jio Platform do?

Jio Platforms claims to build a digital society powered by Reliance Jio‘s network technology.

With Facebook Investment in Jio, It aims to digitize services for consumers, allowing them to shop online and pay online. 

Jio telecom, Jio Apps, Jio Money and Jio Mart are part of Jio Platform.



In October 2019, Reliance announced the creation of a wholly-owned subsidiary for its digital businesses including Jio which In November 2019, was named Jio Platforms.

The ₹1.08 trillion (US$15 billion) liability of Jio was transferred to RIL and

in turn, Reliance received preferential shares of Jio Platforms.

History of Jio


Jio Platform's origin can be traced back to 2010 when Infotel Broadband Services Limited (ISBL), spent $2.7 billion to win pan-India license during broadband spectrum auction.

Shortly after the auction, Reliance Industries took a 95% stake in ISBL. The deal between RIL and ISBL was Mukesh Ambani’s entry into the telecom. Mukesh Ambani renamed ISBL as Jio Platforms, which operates Reliance Jio Infocomm Limited is a wholly-owned subsidiary

Why Investors are pouring money in JIO?


Reason #1

Jio Platforms wants to bring Kirana stores to the digital world.

This is seen as a game-changer and a potential business opportunity for WhatsApp owned by Facebook with nearly 400 million users in the country.

Since Facebook investment in JIO is 5.6 billion USD, Clearly Facebook wants a strategic partnership with Jio.



Reason #2

Reliance has tapped into this heightened interest for technology investments in Jio by positioning Jio as a digital platform company.

The Facebook investment in Jio adds heft since its vast resource of user data and preferences can potentially be used to target customers effectively.

With the Facebook partnership, they will build the WeChat of India," referring to China's messaging, payments and social media app.

Reason #3

There are few investors like a Silver lake which are partnering with Jio to benefit from Jio’s and India’s growth in future.

Reason #4 - To come out of debt

RIL had to raise a lot of debt to launch Jio 4G in September 2016 (remember all the freebies and the cheap data packs that Jio offered?).

Remember in 2019 When Jio was named subsidiary of RIL - The ₹1.08 trillion (US$15 billion) liability of Jio was transferred to Reliance

As Jio grew and beat the competition in less than four years, Reliance decided to pay off the debt and, if possible, earn some profit by selling it stake.

As Reliance has planned to come out of debt by 2021 and with this prospects of JIO making a profit are also growing.

Companies around the world are interested in investing outside of China. In India, Investing in RELIANCE JIO seems like a good bet.

Reason #5 - Covid-19 impact

The outbreak of COVID-19 has clearly been a catalyst for digitalisation. In turn, that may have hastened investment activity.

last few months as Indians have increasingly turned to online platforms to work and study from home, book medical appointments, shop and bank.

Anti-China sentiment may have helped, too.

Amid the COVID-19 pandemic, criticism of China, where the disease first originated, has grown. As investors look for opportunities in other parts of the world, some eyes may have settled on one Indian firm.

Rumour is Jio might also use some of the investments to develop its own 5G technology and ecosystem in the country. Considering RELIANCE has political links, it does not look impossible.

Ambani dominates a dizzying array of sectors: like

* Jio is India's leading telecoms carrier,

* Reliance Retail Limited is its top brick-and-mortar retailer,

* Reliance's Network18 Media & Investments Limited is one of its biggest news networks

* Reliance's Jamnagar is its largest oil complex.

In the last few Years, Jio has invested a lot of money in becoming India’s No 1 telco. Jio has truly brought the Digital revolution in India. it’s time for Jio to reap the benefits.