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Commercial due diligence support to TPG as part of its USD600 million investment in Jio Platforms in India

Project experience | Consulting


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The problem

  • Jio Platforms, the parent company of Reliance Jio1 and home to the latter’s digital ventures, was in the midst of one of the largest global fundraising exercises ever as the COVID-19 pandemic hit
  • Our client, TPG, was considering investment in Jio Platforms, and commissioned Analysys Mason to conduct commercial due diligence of Jio Platforms, including a valuation of its telecoms and digital businesses

The solution

  • Our highly skilled team helped the client to answer key questions, which formed critical inputs to the asset’s valuation
  • We developed a full P&L for the asset’s telecoms business (including wireless and wireline) by
    • developing a detailed market, market share, network and financial model
    • conducting a number of detailed assessments in support of our financial model, including elasticity models to estimate data usage at various price points, and multi-variate regressions
  • For the digital business, we reviewed the business plan of the asset, including market size, market share and cost assumptions across digital verticals (e.g. over-the-top (OTT) services, e-commerce/online grocery and payments)
  • We developed detailed quantitative models and provided insights on market evolution in comparable South-East Asian markets

Figure: Comparison of target’s 5G readiness vs readiness of competitors

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The result

  • Our work was instrumental in informing TPG’s decision to invest in Jio Platforms – we helped to answer critical questions regarding the expected evolution of India’s telecoms and digital market, the potential market share that Jio Platforms could gain, and the related investments required

1 Reliance Jio is the largest mobile operator in India, having achieved ~35% market share in the three years since its launch

We were commissioned  to conduct commercial due diligence of Jio Platforms, including a valuation of its telecoms and digital businesses