Mukesh Ambani-led Reliance Retail Ventures raises Rs 3,675 cr from investor firm General Atlantic

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The latest investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore

Funds are flowing into Reliance Industries arm Reliance Retail Ventures (RRVL) as leading global growth equity firm General Atlantic will invest Rs 3,675 crore in RRVL.

The latest investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. General Atlantic’s investment will translate into a 0.84 percent equity stake in RRVL on a fully diluted basis, said Reliance Industries in a statement.

This marks the second investment by General Atlantic in a subsidiary of Reliance Industries, following a Rs 6,598.38 crore investment in Jio Platforms announced earlier this year.

Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide.

Reliance Retail’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians.

Reliance Retail, through its new commerce strategy, has started a transformational digitalisation of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants. This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.

Reliance Retail so far collected a total Rs 13,050 crore in the past few weeks from private equity company Silver Lake Partners and US firm KKR & Co in exchange for 1.75 percent and 1.28 percent stakes, respectively.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “Like Reliance Retail, General Atlantic believes in the fundamental ability of digital enablement to drive progress, growth, and inclusion across India and the world. We look forward to leveraging General Atlantic’s extensive expertise at the intersection of technology and consumer businesses, and two decades of experience investing in India, as we create a disruptive New Commerce platform to redefine retail in the country.”

Bill Ford, Chief Executive Officer of General Atlantic, said, “General Atlantic is thrilled to be backing Mukesh’s New Commerce mission to drive substantial positive change in the country’s retail sector, which goes hand-in-hand with his vision to enable a Digital India through the work of Jio Platforms. General Atlantic shares Reliance Industries’ foundational belief in the power of technology to foster transformative growth, and we are excited by the immense potential of the full Reliance ecosystem.”

Image credit: File photo

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