Silver Lake is one of the leading private equity firms in the global technology industry and its decision to invest $747 million in Jio Platforms is a positive sign for the Indian ICT industry. It speaks volumes about the global investor confidence in the Digital India story and Reliance Jio, in particular.
It is important to note that this Silver Lake investment is at a 12.5% premium over the valuation of the Facebook-Jio deal. It highlights the positive reception of the Facebook-Jio deal that has strengthened both companies.
Impact on Indian Tech Industry
The biggest impact is the global attention that Facebook and Silver Lake investments have brought to the Indian ICT industry. This is the beginning of a shift in the tide of investments toward the Indian technology industry. Going forward, there will be more investments in the Indian ICT sectors by global majors.
Frost & Sullivan’s analysis indicates that most investors recognize that the rate of recovery post-COVID-19 will be much faster in India compared to other developed markets and it will be led by significant growth in digital investments. The pandemic has helped various governments, industries, and consumers understand the importance of digital technologies.This realization will help accelerate digital adoption and growth in India.
What does this mean for Jio and Silver Lake?
For Jio, this deal is significant because:
- It will help increase its visibility, amplify its investments into infrastructure, help in building more partnerships, and thereby offer more value to its customers.
- It endorses the technology capability Jio has built using futuristic and cutting-edge technologies.
For Silver Lake, this will help diversify its portfolio into more regions. After this initial foray into India, we can expect more investments from Silver Lake, as it looks to tap the growth potential of the Indian ICT industry.
Work Done by Frost & Sullivan on COVID-19:
To know more about Frost & Sullivan’s analyses on COVID-19 from across the globe, visit – https://www.frost.com/insights/covid19/.
Should you have any queries on the impact of COVID-19 across industries, need more information or would like to schedule an interview/interaction with our spokespersons, please email Srihari Daivanayagam at Srihari.Daivanayagam@frost.com.
