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After Qatar Investment Authority, US-based investment firm KKR is investing Rs 2,069 crore or nearly $250 million in Ambani’s Reliance Retail Ventures Limited.
The investment positions Reliance Retail among the top four retail companies in the world
KKR, which has backed Indian companies like Advanta and Lenskart and is an existing investor in Jio Platforms, is investing Rs 2,069 crore at a pre-money valuation of Rs 8.361 lakh crore.
Previously, Qatar Investment Authority (AIQ) invested $1 billion in Reliance Industries retail unit at a valuation of $100 billion. Earlier, It was reported that Reliance Retail is looking to raise $2.5 billion from global investors, which would be completed by the end of September month.
This comes after Mukesh Ambani’s Reliance Retail Ventures said it plans to raise funds before a potential stock market listing.
KKR increases its stake
With this investment, KKR's stake will be increased by an additional 0.25% in RRVL on a fully diluted basis, from 1.17% to 1.42%.
Previously, Reliance Retail had raised Rs 47,265 crore from global investors, including KKR, which invested Rs 5,550 crore in 2020 at a pre-money valuation of Rs 4.21 lakh crore.
Joe Bae, Co-CEO of KKR, said, “We are pleased to extend our relationship with Reliance Retail Ventures Limited. Throughout our investment period in Reliance Retail, we have been impressed by the company’s vision and extensive work to empower retailers across India through digitalization, as well as by its resilience and performance in spite of the pandemic and other disruptions."
KKR’s investment comes primarily from its Asian Fund IV. The company said the transaction is subject to regulatory and other customary approvals.
Reliance Retail operates India's largest retail business
Through its subsidiaries and affiliates, Reliance Retail Ventures Limited (RRVL) operates India's largest retail business with an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharma consumption baskets.
The company has partnered with over 3 million merchants through its New Commerce initiative.
Isha Mukesh Ambani, Director of Reliance Retail Ventures Limited, said, "We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL’s vision and capabilities. We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge and operational expertise in our journey towards driving a transformation of the Indian retail sector.”
($1 = INR 82.97)
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