Funding Alert

Abu Dhabi Investment Authority Invests Rs 4,966.8 Crore in Reliance Retail Ventures Limited

• ByStartupStory     |    October 7, 2023

The Abu Dhabi Investment Authority (ADIA) has finalized an investment of Rs 4,966.8 crore in Reliance Retail Ventures Limited (RRVL), representing a 0.59% equity stake in the company, as announced by Reliance Industries on Friday.

This strategic investment values RRVL at a pre-money equity valuation of Rs 8.381 lakh crore ($100.83 billion), firmly positioning it among the top four companies in India based on equity value. RRVL serves as the holding entity for Reliance Industries Limited’s (RIL) retail business, encompassing an integrated omnichannel network spanning over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharmaceutical consumption segments.

Isha Mukesh Ambani, Executive Director of RRVL, expressed her satisfaction with the deepened relationship with ADIA, stating, “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in RRVL. Their long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving the transformation of the Indian retail sector.”

Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, highlighted the company’s belief in RRVL’s growth potential, stating, “Reliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace. This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end markets. We are pleased to partner with the Reliance Group and increase our exposure to India’s dynamic and fast-growing consumer sector.”

RRVL previously raised Rs 47,265 crore (approximately $6.4 billion) from leading global private equity funds in 2020, securing a 10.09% stake and a valuation exceeding Rs 4.2 lakh crore. Notable investors included Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic, and Saudi Arabia’s Public Investment Fund. RRVL’s valuation at the time exceeded $57 billion.

Reliance Industries Chairman, Mukesh Ambani, had earlier indicated strong investor interest in RRVL during the company’s annual general meeting (AGM). He underscored that if RRVL were listed on stock exchanges, it would be among the top four listed entities in India based on its current valuation. The valuation of Reliance Retail doubled in less than three years, a pace Ambani described as “unmatched globally.”

Exciting news! We’re now on WhatsApp Channels too.  Subscribe today by clicking the link and stay updated with the latest insights in the startup ecosystem! Click here!

In its latest annual report, RIL highlighted that Reliance Retail achieved the significant milestone of surpassing a billion transactions, with a registered user base of 249 million. In FY23, digital commerce and new commerce businesses accounted for 18% of Reliance Retail’s revenue, which amounted to Rs 2.60 lakh crore.

Follow Startup Story