QIA investment is a strong endorsement of positive economic outlook, says Isha Ambani
Qatar Investment Authority (QIA) will invest Rs.8,278 crore (approx. US$1billion) in Reliance Retail Ventures Limited (RRVL) to participate in India’s largest, fastest growing and most profitable retail business.
QIA’s investment comes as the Qatari fund seeks to further invest in India’s fast-growing economy, RRVL said on 23 Aug 2023, announcing the QIA investment which translates into a minority equity stake of 0.99% in RRVL on a fully-diluted basis.
QIA CEO Mansoor Ebrahim Al-Mahmoud said, “QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market.
“We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India.”
QIA is making the investment through subsidiaries at a pre-money equity value of Rs.8.278 lakh crore.
The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of Rs.47,265 crore was done at a pre-money equity value of Rs.4.21 lakh crore.
RRVL’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers, empowering 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.
RRVL, through its New Commerce business, has digitized more than 3 million small and unorganised merchants. This will enable these merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.
The subsidiary of Reliance Industries Limited serves 267 million loyalty customers with an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery.
Welcoming the QIA investment, RRVL Director Isha Mukesh Ambani said, “The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance’s retail business model, strategy and execution capabilities.”
“We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world class institution, driving transformation of the Indian retail sector.” Fiinews.com
