Private equity firm TPG backs Reliance Industries' Jio Platforms with investment of $598m

Deal follows stake purchase last week by Abu Dhabi Investment Authority

People wait at a bus stop advertising Jio's wireless network services for mobile phones. Qualcomm's investment values Jio Platform’s equity at about $65.3bn. Reuters

Indian oil-to-telecoms conglomerate Reliance Industries said on Saturday that global investment firm TPG will buy a 0.93 per cent stake in its digital unit Jio Platforms for 45.46 billion rupees (Dh2.2bn/$598 million).

Reliance, controlled by India's richest man Mukesh Ambani, has now sold nearly 22 per cent of Jio Platforms to investors including Facebook, securing $13.47bn (Dh49.47bn) since late April.

Last Sunday, Reliance said that the Abu Dhabi Investment Authority will buy a 1.16 per cent stake in Jio Platforms for $752 million.

"Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services," TPG co-chief executive Jim Coulter said in a statement.

With more than $79bn of assets under management, TPG is an investor in global technology companies including Airbnb, Uber, and Spotify.

Its investment in Jio Platforms, which comprises Reliance's telecoms arm Jio Infocomm and its music and video streaming apps, gives the unit an enterprise value of $67.87bn, Reliance said.

Jio Infocomm is India's biggest telecoms firm by subscribers, with more than 376 million users. It has forced out several rivals and driven consolidation in the sector since entering the market in 2016 with free voice service and cut-price data.

The Jio Platforms deals, along with a $7bn share sale, will help Reliance meet its target of eliminating $21.4bn of net debt by the end of the year, according to the company.