ADIA Considers $600 Million Investment in Reliance Retail: Report

• ByStartupStory     |    September 27, 2023

Abu Dhabi Investment Authority (ADIA) is reportedly exploring the possibility of investing $600 million in Reliance Retail, owned by Mukesh Ambani. This development follows recent reports indicating that Reliance Retail is in discussions with sovereign wealth funds from Saudi Arabia, Abu Dhabi, and Singapore for potential investments totaling $1.5 billion.

Notably, ADIA had previously invested in Reliance Retail Ventures (RRVL) in October 2020 when it acquired a 1.2% stake for ₹5,512.50 crore. This investment move highlights ADIA’s continued interest in the retail sector in India and its confidence in Reliance Retail’s growth prospects.

Reliance Retail has been actively seeking investment to fuel its expansion and strengthen its financial position. In the past, it has attracted investments from prominent entities, including Saudi PIF, Mubadala, GIC of Singapore, Silver Lake, TPG, and GA. Recently, Qatar Investment Authority’s subsidiary invested ₹8,278 crore in RRVL, acquiring a 0.99% minority stake in the company.

Reliance Retail operates an extensive omnichannel network comprising over 18,500 stores and digital commerce platforms spanning various sectors. Through its New Commerce initiative, it collaborates with three million merchants. In the fiscal year ending March 31, 2023, the company reported a consolidated turnover of ₹260,364 crore ($31.7 billion) and a net profit of ₹9,181 crore ($1.1 billion).

These investments and collaborations have contributed to Reliance Retail’s impressive valuation, which currently stands at approximately $57 billion. With its robust financial backing and extensive retail presence, the company continues to play a pivotal role in India’s retail landscape.

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