RIL sells another 2.32% in Jio, this time to Vista Equity for Rs 11,367 cr

This is Jio's third major announcement in three weeks after it previously sold stakes to Facebook and Silver Lake.

Reliance Jio Platforms, part of Mukesh Ambani-controlled Reliance Industries group, has sold a 2.32 per cent stake to US-based private equity firm Vista Equity on a fully diluted basis for Rs 11,637 crore. This is a third major equity deal for Jio Platforms in three weeks — it previously sold a 9.9 per cent stake to Facebook for Rs 43,534 crore, and then 1.5 per cent to Silver Lake for Rs 5,655 crore.

The Vista Equity investment has valued Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion. Vista’s investment will make Vista it “the largest investor in Jio Platforms behind Reliance Industries and Facebook”. Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks.

Vista is a global investment firm focused on empowering and growing enterprise software, data and technology-enabled companies. It has more than $57 billion in cumulative capital commitments and its global network of companies collectively represents the fifth-largest enterprise software company in the world.

Commenting on the deal, Reliance Industries Chairman and Managing Director Mukesh Ambani said: “I am delighted to welcome Vista, one of the world’s marquee tech investors as a valued partner. Like our other partners, Vista also shares with us the same vision of continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. They believe in the transformative power of technology to be the key to an even better future for everyone. In Robert and Brian, whose family hails from Gujarat, I found two outstanding global technology leaders who believe in India and the transformative potential of a Digital Indian Society. We are excited to leverage the professional expertise and multi-level support that Vista has been offering to its investments globally for the benefit of Jio.”

MyMoneyMantra raises Rs 104 crore from Dutch investor, Vaalon Capital

MMM, which sells secured and unsecured loans, credit cards and insurance products, will issue convertible shares and use the proceeds to strengthen its technology, data analytics and expand its reach.

MyMoneyMantra (MMM), a distributor of financial products, has raised Rs 104 crore ($15 million) from Dutch investment company IFSD BV and private equity firm Vaalon Capital for a 30 per cent stake in the firm.

MMM, which sells secured and unsecured loans, credit cards and insurance products, will issue convertible shares and use the proceeds to strengthen its technology, data analytics and expand its reach.

Started by chartered accountant Raj Khosla in 1989, MMM has been growing at 30 per cent in the last five years before the credit crunch. It is profitable firm with a topline of Rs 150 crore and presence in 52 cities.

It competes with distributors such as Andromeda and bankbazaar.com but follows a mixed strategy (physical + digital presence). A third of its business comes from tier-2/3 cities, and the rest from top 7 cities.

"MMM has a good management team who combine entrepreneurship and vision with great experience, relationships and reputation in the consumer finance sector with great organisational and operational skills,’’ says Daniel Brol, advisor, Vaalon Capital, which advised IFSD.

Secondly, Indian consumer finance sector is poised for growth given India’s demographics, with a potential to reach over 500 million retail finance potential customers seeking guidance on personal finance. ‘‘We look at MMM as an impact investment which will have a small but positive contribution to the Indian economy and society,’’ he says.

IFSD BV is a Dutch investment company based in Rotterdam and advised by Vaalon Capital. Vaalon Capital is a UK-based private equity and advisory firm founded in 2016 and is focused on making long-term investments in companies with significant growth potential. It has made four investments globally, and this is its maiden deal in India.

Business Standard