Reliance Retail gets another investor onboard
Mukesh Ambani’s company Reliance Retail has had an influx of investors. On Thursday, PIF announced an investment of Rs 9,555 crore for 2.04 per cent equity in Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries. The deal valued the pre-money equity of Reliance Retail at Rs 4.587 lakh crore. Pre-money equity is about Rs 30,000 crore more than previous investments.
The process of investing in Reliance Retail began on September 9 with Silver Lake. Subsequently, global investment funds such as KKR, General Atlantic, Mubadla, GIC, TPG and ADIA have invested in it. With this PIF deal, more than 47,265 thousand crores have been invested so far for nine per cent equity in Reliance Retail through nine investments.
Mukesh Ambani, chairman and managing director of Reliance Industries, said that we have a long standing relationship with Saudi Arabia. PIF is playing a key role in Saudi’s economic development. I welcome PIF as an important partner in Reliance Retail. We look forward to the continued support of PIF for our ambitious plan to enrich the lives of 130 crore Indians and millions of small traders and transform the retail sector.
Reliance Retail Limited has around 64 crore buyers annually in more than 12 thousand stores across the country. It is the largest and fastest growing retail business in the country. Reliance Retail also holds the title of the most profitable retail business in the country.
The company wants to develop a system of retail global and domestic companies, small industries, retail traders and farmers to serve the consumer at an affordable price and generate employment. It has started digitizing small and unorganized traders as part of its new strategy. The company aims to connect two crore merchants to this network. This network will enable merchants to deliver services at the right price with superior technology.
