Global investment firm KKR has invested Rs20.69bn ($250m) into Reliance Retail Ventures Limited (RRVL), a subsidiary of Indian retail conglomerate Reliance Industries.
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This investment values RRVL at $100bn and increases KKR’s equity stake in RRVL from 1.17% to 1.42%.
RRVL operates an integrated omnichannel network of more than 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion, lifestyle, and pharma sectors. Its subsidiaries and associates have a presence in over 7,000 towns and cities in India.
For the year ended 31 March 2023, RRVL reported a consolidated turnover of Rs2603.6bn ($31.7bn) and a net profit of Rs91.81bn ($1.1bn).
This follows a Rs55.5bn ($755.09m) investment from KKR in 2020. The investment comes primarily from KKR’s Asian Fund IV and is subject to regulatory and customary approvals.
Morgan Stanley acted as financial advisor for RRVL during the transaction, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell served as legal counsels.
A Reliance Mall in an Indian city. Credit: Rizwanmahai/commons.wikipedia.org.
This follow-on investment from KKR is a testament to the strong belief in RRVL’s vision and capabilities. RRVL’s director, Isha Mukesh Ambani, expressed gratitude for KKR’s continued support and looks forward to benefiting from their global platform, industry knowledge, and operational expertise.
Last month, Qatar Investment Authority also invested Rs82.78bn ($1bn) in RRVL, marking a significant move in Asia’s retail battleground. This investment is expected to help RRVL expand its e-commerce and digital capabilities.
The recent investments from KKR and Qatar Investment Authority reflect the growing interest in India’s retail sector and the potential for growth in the coming years.
