Jio was the biggest risk and the best philanthropy we have done: Mukesh Ambani

Mukesh Ambani has characterized the initial phases of Reliance Jio as the most audacious and impactful gamble his company has taken. He referred to the massive $25 billion investment not merely as a business move but as potentially the most significant act of philanthropy Reliance could offer to India. In a conversation with McKinsey senior partner Gautam Kumra, Ambani explained that the entire funding for Jio came from within Reliance. As a majority shareholder, he expressed confidence in the venture's potential despite the challenges. At that time, India’s telecom sector was highly fragmented, mobile data costs were steep, and internet access was limited. Many experts were skeptical about whether a nation of over a billion could embrace advanced digital infrastructure. Ambani acknowledged the risks, stating, “Our worst-case scenario was that it might not work out financially.” Some analysts had voiced concerns about India’s readiness for high-speed digital technology. However, Ambani's vision remained steadfast. He told his board, ‘In the worst case, we will not earn much return. That’s okay because it’s our own money. But then, as Reliance, this will be the best philanthropy that we will have ever done in India because we will have digitised India, and thereby completely transformed India.’ The impact of this transformation is now evident both economically and socially. Jio launched its services in 2016, offering free data and voice calls, which led to a complete overhaul of the Indian telecom market. In just months, it amassed over 100 million users, and by 2024, the subscriber base had surged to over 470 million, according to the Telecom Regulatory Authority of India (TRAI). Jio’s valuation has seen a dramatic rise as well. During the height of the COVID-19 pandemic in 2020, Reliance secured over $20 billion for Jio Platforms from global investors like Facebook (now Meta), Google, Silver Lake, and KKR, valuing the company at over $65 billion at that time. By late 2023, analysts from Jefferies and CLSA estimated Jio’s worth to be between $95 and $100 billion, reflecting its growth in 5G, broadband, and digital services. Beyond telecom, Jio has expanded into broadband with JioFiber, enterprise cloud solutions through partnerships such as Jio-Azure with Microsoft, and financial services via Jio Financial Services, which went public in August 2023. A report from ICICI Securities projected that by FY26, Jio would contribute nearly 50% of Reliance Industries’ total EBITDA. The societal influence of Jio is equally significant. India has emerged as the world’s largest consumer of mobile data, with individual data usage exceeding 32 GB monthly, according to the latest Ericsson Mobility Report. Affordable and widespread internet access has allowed millions to engage in digital commerce, online education, healthcare, and e-governance. Ambani’s reflections on Jio’s risks and its ultimate purpose encapsulate a broader leadership philosophy where financial success aligns with national development. He emphasized, “For us, scale is important,” underscoring that their investment was a bet on the future of India—a risk that has proven to be well worth taking.