Jio Platforms finds the right signal with 'non-connectivity' ventures

Jio Platforms’ quietly sustained investments in building its “non-connectivity” service business — which included a bevy of acquisitions of companies and platforms in media, entertainment, and technology startups — are slowly generating revenues.

 

Non-connectivity revenues of Jio Platforms have now risen 36 per cent year-on-year in the fourth quarter (Q4) of 2024-25 (FY25) to about ₹3,968 crore, compared with ₹2,912 crore in the same quarter the previous year.

 

More importantly, growth is even faster — up 62 per cent in Q4FY25 over the previous quarter. As a result, non-connectivity revenues now account for a reasonable 12 per cent of consolidated revenues in Q4FY25 for Jio Platforms, where the bulk still comes from mobile and broadband connectivity services, known as “connectivity services”. 

 

At an annualised level, revenues from non-connectivity services are expected to reach about ₹16,000 crore.

 

The non-connectivity service revenues come from three segments. The first is the consumer digital space, where Jio Platforms has taken an ecosystem approach. Income comes from platforms like JioSaavn (the music channel it acquired), business-to-consumer media and entertainment offerings like JioHotstar and JioCinema (from the merger of Star TV, TV18, and JioCinema), JioTV, and over 12 third-party over-the-top applications. The second segment includes revenues from companies it has acquired or taken controlling stakes in — high-technology startups that run on the back of connectivity support or also support connectivity.

 

According to estimates, it has invested over $1.6 billion in as many as 26 companies since 2015. These include the acquisition of the US-based telecommunications technology firm Radisys, artificial intelligence-based conversational company Haptik (now renamed Jio Haptik Technologies), drone maker Asteria Aerospace, and many others.

 

The third source of revenue is from business-to-business operations, which include Cloud and managed services focused on the enterprise segment.

 

Experts, however, point out that currently, the bulk of revenues from non-connectivity services come from the enterprise segment. But with the media and entertainment business-to-consumer space now consolidated after the merger of Star TV with TV18, and with increases in subscriptions and advertising income, this segment is expected to see a steep rise. Also, most of the startup companies that were in the initial stages of growth are now expected to push the pedal.

 

The model Jio Platforms has adopted is similar to what many global players have undertaken. For instance, while the core business for Apple Inc is selling iPhones, the share of services income has risen sharply. In 2024, Apple’s revenues from services accounted for 25 per cent of the company’s overall revenues. 

 

Revenue generator 

• Consumer digital space
• Revenues from firms Jio Platforms has acquired or taken controlling stakes in
• Revenue from business-to-business operations