Having invested in Jio, KKR backs Reliance’s ever-growing retail business
Already Reliance backed Jio is a super-power in the country with its footsteps in almost all sectors from mobile network to shopping, Jio is expanding in a massive way. Another huge income source for Reliance is obviously its huge retail business all over India.
Recently, Reliance poured its previous investments to buy the Future Group who is known for its massive retail chain in India. This has already added to Reliance’s 11,784 stores in the country and now to further make a revolution in the retail chain business in India, Kohlberg Kravis Roberts is investing about ₹ 5,550 crores into Reliance Retail Ventures Limited.
This investment values Reliance Retail at a pre-money equity value of ₹ 4.21 lakh crore. KKR’s investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis. Also, this marks the second investment by KKR in a subsidiary of Reliance Industries, following a ₹ 11,367 crore investment in Jio Platforms announced earlier this year.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “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. 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.”
Henry Kravis, Co-Founder, and Co-CEO of KKR, said, “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. 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.”
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