Mumbai: Once again, global investment firm KKR will invest Rs 5,550 crore in Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries, to buy a 1.28% equity stake. This is the second major investment in Reliance Retail.
On Wednesday, Reliance Industries Limited and Reliance Retail Ventures Limited announced this investment. Reliance Retail’s pre-money equity has been valued at Rs 4.21 lakh crore in the deal. After this news, Reliance Industries shares rose by Rs 52 to Rs 2263 on Wednesday.
Also invested in Jio platforms
Earlier in the year, KKR had invested Rs 11,367 crore in Jio platforms. This is KKR’s second investment in a subsidiary of Reliance Industries.
Trying to create the largest retail network
Reliance Retail Limited says that it has about 64 crore buyers annually in its more than 12 thousand stores spread across the country. It is the largest and fastest growing retail business in India. Reliance Retail also has the most profitable retail business in the country. The company wants to develop a large network of retail global and domestic companies, small industries, retail traders and farmers. Recently, the company has also acquired Future Market’s Big Bazaar retail network.
Attempt to add 2 crore merchants
Reliance Retail has started the digitization of small and unorganized merchants as part of its new commerce strategy. The company’s goal is to connect 2 crore merchants to this network. This network will enable merchants to deliver services at a better price to customers with better technology.
Retail eco-system will develop further: Mukesh Ambani
Mukesh Ambani, Chairman and Managing Director of Reliance Industries said that I am happy to welcome KKR as an important investor in Reliance Retail Ventures. We will continue to develop and change the Indian retail eco-system for the benefit of every Indian. We are ready to take advantage of KKR’s global platform, industry knowledge and operational experts in our digital services and retail business.
Relations with Reliance will be stronger: KKR
KKR co-founder and co-CEO Henry Kravis said that we are further strengthening our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Reliance Retail is empowering all merchants and changing the retail shopping experience of Indian consumers. We fully support Reliance Retail’s mission to become India’s leading retailer and create a more inclusive Indian retail economy.
