Global investment firm KKR will invest Rs 5,550 crore in Reliance Industries’ retail arm, Reliance Retail Ventures Limited (RRVL). KKR will pick up 1.28 per cent of the equity stake in RRVL. This investment is subject to regulatory and other approvals.
The investment into RRVL will be made through KKR’s Asia private equity funds.
Before this investment, Reliance Retail is valued at a pre-money equity value of Rs 4.21 lakh crore. This the second investment in the last one month in RRVL. Just recently, US private equity firm Silver Lake had announced an investment of Rs 7,500 crore in Reliance Retail.
In the past, KKR had announced the investment of Rs 11,367 crore investment in Jio Platforms and now, it is the second time the firm is investing in Reliance Industries.
Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fastest-growing, and most profitable retail business serving close to 640 million footfalls across its approximately 12,000 stores nationwide.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We look forward to working with KKR’s global platform, industry knowledge, and operational expertise across our digital services and retail businesses.”
Henry Kravis, Co-Founder, and Co-CEO of KKR, said, “We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures, which is empowering merchants of all sizes and fundamentally changing the retail experience for Indian consumers. Reliance Retail’s new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers move to shopping online and the company offers tools for Kiranas to be a critical part of the value chain. We are thrilled to support Reliance Retail in its mission to become India’s leading omnichannel retailer and ultimately to build a more inclusive Indian retail economy.”
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.