On Monday, Indian conglomerate Reliance said that U.S. private equity firm Silver Lake Partners will invest $1.02 billion (₹7,500 crores) in the retail arm, Reliance Retail Ventures Limited (RRVL) of Reliance Industries Ltd for a 1.75% stake, ET reported.
As per the report the investment values Reliance Retail Ventures Limited (RRVL) at a pre-money equity value of Rs 4.21 lakh crore, the oil-to-retail conglomerate said in a regulatory filing. Reliance Retail Limited is a subsidiary of RRVL. The company operates India’s largest retail business serving close to 640 million footfalls across its nearly 12,000 stores nationwide.
Notably, a few weeks back, Reliance Retail confirms that it acquiring the retail business of the Kishore Biyani’s Future Group for Rs 24,713 crore.
This becomes more interesting as this is the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary, as it already invested $1.35 billion in Jio Platforms, earlier this year.
While talking about the deal, Reliance Industries’ Chairman and Managing Director, Mukesh Ambani said, “I am delighted to extend our relationship with Silver Lake to our transformational efforts of building an inclusive partnership with millions of small merchants while providing value to Indian consumers across the country in the Indian retail sector. We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian Retail.”
Notably, Silver Lake is known as a global leader for its large-scale technology investments, includes more than $60 billion in combined assets under management.
Meanwhile commenting on the transaction, Silver Lake’s Co-CEO and Managing Partner, Egon Durban said, “We are pleased to deepen our relationship with Reliance with this investment. The success of JioMart in such a short time span, especially while India, along with the rest of the world, battles the COVID-19 pandemic, is truly unprecedented, and the most exciting growth phase has just begun. Reliance’s New Commerce strategy could become the disruptor of this decade. We are thrilled to have been invited to partner with Reliance in their mission for Indian Retail.”