InvestorQ : How are investors giving a valuation of Rs.515,000 crore to a company like Jio Platforms which is just about 6 months old?
NISHA Nayak made post

How are investors giving a valuation of Rs.515,000 crore to a company like Jio Platforms which is just about 6 months old?

Answer
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4 months ago


You are right that the enterprise value of Jio Platforms, which is just a 6-month old company, is now Rs.515,000 crore. What has made Jio Platform a darling of investors that Facebook and Silver Lane are willing to pay top dollars for the company? Clearly, the answer lies in the multiple revenue streams of Jio Platforms from the same user base. It is a subscription driven model and holds a goldmine of consumer data. It decouples revenue from the number of users as the same customer base is used for multiple revenue streams giving it automatically a higher valuation. This is unlike Jio Infocomm which is capex heavy. Even BOFA has pointed out that he focus of investors is moving towards payments and commerce rather than just ads.