- Reliance Industries today announced that Silver Lake will invest ₹ 7,500 crores in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries.
Reliance Industries today announced that Silver Lake will invest ₹ 7,500 crores in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries. This investment values RRVL at a value of ~4.21 lakh crore pre-money equity. Investment by Silver Lake will translate into a fully diluted 1.75 percent equity stake in RRVL.
This marks Silver Lake’s second billion-dollar investment in a subsidiary of Reliance Industries, following the $1.35 billion investment announced earlier this year in Jio Platforms.
Shares in the Reliance Industries were approximately 1 percent higher.
Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest and fastest-growing retail business serving close to 640 million footfalls across its nearly 12,000 stores nationwide.
Reliance Retail has started digitizing small and unorganized merchants through its new trade strategy, and plans to expand the network to more than 2 crores of these merchants, helping them benefit from the use of technology tools and efficient supply chain infrastructure.
Commenting on the transaction with Silver Lake, Reliance Industries Chairman and Managing Director Mukesh Ambani said, “I am pleased to extend our relationship with Silver Lake to our transformative efforts to build an inclusive partnership with millions of small traders while at the same time providing value to Indian consumers across the country in the Indian retail sector. We believe technology will be key to bringing about the much-needed transformation in this sector so that different constituents of the retail ecosystem can work together to build inclusive platforms for growth. Silver Lake will be an invaluable partner in putting our Indian Retail vision into practise.
With more than $60bn under management in combined assets, Silver Lake is a global leader in large-scale technology investment.
Egon Durban, Silver Lake’s Co-CEO and Managing Partner, said, “We are delighted to deepen our relationship with Reliance on this investment. JioMart ‘s success in such a short period, particularly as India, along with the rest of the world, is battling the COVID-19 pandemic, is truly unprecedented, and the most exciting phase of growth has just begun. The New Commerce strategy for Reliance could become this decade’s disruptor. We’re delighted to be invited to partner with Reliance in their Indian Retail mission.
KKR in advanced talks to invest $1 billion for a stake in Reliance Retail.