Reliance Industries Limited and Reliance Retail Ventures Limited announced Wednesday that General Atlantic will invest ₹ 3,675 crore into RRVL, a subsidiary of Reliance Industries. This investment values Reliance Retail at a pre-money equity value of ₹ 4.285 lakh crore. General Atlantic’s investment will translate into a 0.84% equity stake in RRVL on a fully diluted basis.
This marks the second investment by General Atlantic in a subsidiary of Reliance Industries, following a ₹ 6,598.38 crore investment in Jio Platforms announced earlier this year.
Reliance Retail has collected a combined ₹13,050 crores in the past few weeks from private equity company Silver Lake Partners and US buyout firm KKR & Co in exchange for 1.75 percent and 1.28 percent stakes, respectively.
Mukesh Ambani, Reliance Industries Chairman and Managing Director, said, “I am pleased to expand our relationship with General Atlantic as we work to motivate both merchants and customers alike and eventually transform Indian Retail.” General Atlantic, like Reliance Retail, believes in the fundamental capacity of digital enablement across India and the world to drive development, prosperity, and inclusion. We look forward to leveraging the extensive expertise of General Atlantic at the intersection of technology and consumer enterprises and two decades of investment experience in India as we create a revolutionary forum for Digital Commerce to redefine retail in the region.
“General Atlantic is delighted to support Mukesh ‘s New Commerce project to drive significant positive change in the retail sector of the country, which goes hand-in – hand with his vision of enabling Digital India through the work of Jio Platforms,” said Bill Ford, Chief Executive Officer of General Atlantic. General Atlantic shares the fundamental belief of Reliance Industries in the ability of technology to facilitate disruptive growth and we are inspired by the tremendous potential of the complete ecosystem of Reliance. We are honoured to partner with the Reliance team again to dramatically accelerate the role of India in the global digital economy.
With approximately 12,000 outlets, Reliance is India’s biggest retailer and has been looking to expand its so-called new e-commerce venture as it vies for market share in India ‘s rising retail space.
Morgan Stanley was Reliance Retail’s financial advisor, and Cyril Amarchand Mangaldas and Davis Polk & Wardwell were legal advisors. For General Atlantic, Shardul Amarchand Mangaldas & Co and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel.
On 23rd September, Reliance Industries Limited and Reliance Retail Ventures Limited announced that global investment company KKR will invest about 5,550 crores in Reliance Retail, a Reliance Industries subsidiary. At a pre-money equity valuation of ⁇ 4.21 lakh crore, this investment values Reliance Retail. On a completely diluted basis, KKR ‘s investment would translate into a 1.28 percent equity interest in RRVL.
