KKR to invest $755 mn in Reliance’s retail subsidiary to pick up 1.28 pc stake

Marks 2nd investment after $1.6bn in Jio Platforms

MUMBAI/September 23: Reliance Industries Ltd (RIL) and Reliance Retail Ventures Ltd (RRVL) said the global investment firm KKR will invest Rs5,550 crore ($755 million) into RRVL, a subsidiary of Reliance Industries.

This investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore ($57.28 bn). KKR’s investment will translate into a 1.28 per cent equity stake in RRVL on a fully diluted basis.

This marks the second investment by KKR in a subsidiary of Reliance Industries, following a Rs11,367 crore ($1.6 bn) investment in Jio Platforms announced earlier this year.

KKR has $222 billion in assets under management as of June 30, 2020 and a long history of building leading global enterprises, including many companies at the forefront of technology and digital transformation including in areas of consumer retail and eCommerce.

Reliance Retail Ltd, 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.

A statement said that Reliance Retail’s vision is to galvanise the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians.

Reliance Retail, through its ‘New Commerce’ strategy, has started a transformational digitalisation of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants.

“This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers,” it added.

The KKR portfolio includes investments in Epic Games, OutSystems, Internet Brands, Go-jek and Voyager Innovations. KKR established its first of eight Asia offices in 2005 and the firm currently has approximately $5.1 billion in private equity investments across more than 15 Indian companies, including Jio Platforms, JB Chemicals, Max Healthcare, Eurokids International and Ramky Enviro Engineers. Mukesh Ambani, Chairman and Managing Director of Reliance Industries, welcoming KKR said the global investment firm has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years.

 

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