After US-based corporations like Facebook, General Atlantic and KKR invested heavily in Mukesh Ambani-led Jio Platforms, global tech giant Microsoft is reportedly in talks with the company for a potential investment of $2bn. Jio Platforms is the digital unit of Reliance Industries Limited.
According to a LiveMint report, Microsoft has been in discussions with several players in the digital payments services space. With Reliance, Microsoft is interested in buying more than a 2.5% stake in Jio Platforms.
If the transaction comes through, Microsoft will get a stake in the Jio Platforms. Jip has already gained about $10bn of investment from big players like Facebook, KKR, Silver Lake, Vista Equity Partners and General Atlantic.
While sources maintain that Microsoft is keen on partnering with Jio by buying shares, there is yet no confirmation by either of the companies regarding the development.
Earlier in February, Microsoft and Jio had signed a partnership as part of which Reliance Jio plans to set up data centres across the country and use Microsoft Azure’s cloud services for enterprise clients.
In an attempt to gain on India’s fast growing digital market, foreign investors are heavily putting their money in the country’s digital space and Jio has become their most sought after company. Jio Platforms combines all of Reliance’s digital and telecom initiatives, including Jio digital services (mobile, broadband), apps, tech capabilities (artificial intelligence, Big Data, Internet of Things, etc.,) and other investments such as in Den Networks, Hathway Cable and Datacom Ltd.
Also, the recent selling of stakes in Jio Platforms by Mukesh Ambani is part of a broader plan. Mukesh Ambani has set a target of 2021 to make his company Reliance debt-free. The richest man in India is reportedly also looking for a foreign IPO of Jio Platforms.
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