Global investors to tap the fastest retail business
Global investment firm KKR will invest Rs.5,550 crore in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries, following an Rs.11,367 crore investment in Reliance’s Jio Platforms announced earlier this year.
This investment values Reliance Retail at a pre-money equity value of Rs.4.21 lakh crore. KKR’s investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis.
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 ~12,000 stores nationwide.
Reliance Retail’s vision is to galvanize 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 digitalization 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.
“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,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.
“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,” said Ambani.
“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,” said Henry Kravis, Co-Founder and Co-CEO of KKR.
“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,” said Kravis.
KKR is making its investment from its Asia private equity funds. The transaction is subject to regulatory and other customary approvals.
Founded in 1976, KKR has US$222 billion in assets under management as of 30 June 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, such as investments in Epic Games, OutSystems, Internet Brands, Gojek and Voyager Innovations.
KKR established its first of eight Asia offices in 2005 and the firm currently has approximately US$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. #retails #investment #online #Reliance #Jio /fiinews.com
