KKR to Invest INR 2,069 Crores in Reliance Retail, Boosting Stake to 1.42%
- ByStartupStory | September 12, 2023
On September 11, Reliance Retail Ventures Limited (RRVL), a subsidiary of the conglomerate Reliance Industries, revealed that global investment firm KKR, through an affiliate, will be injecting Rs 2,069.50 crore into the company.
This investment places RRVL at a pre-money equity valuation of Rs 8.361 lakh crore, positioning it among the top four companies in the country in terms of equity value.
KKR’s follow-on investment will result in an additional equity stake of 0.25% in RRVL on a fully diluted basis. When combined with its stake from its previous investment of Rs 5,550 crore in RRVL in 2020, KKR’s total equity stake in RRVL will reach 1.42 percent on a fully diluted basis. RRVL’s previous fund-raising round in 2020 from various global investors amounted to Rs 47,265 crore and was done at a pre-money equity valuation of Rs 4.21 lakh crore.
KKR’s investment originates primarily from its Asian Fund IV. The transaction is contingent on regulatory and other customary approvals, according to Reliance Retail.
RRVL, the retail arm of Reliance Industries, oversees India’s largest and most profitable retail business, serving 26.7 crore customers through 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma segments.
Commenting on the investment, Isha Mukesh Ambani, Director, of Reliance Retail Ventures Limited, said, “We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge, and operational expertise, in our journey towards driving the transformation of the Indian retail sector.”
Joe Bae, Co-CEO, of KKR, added, “Throughout our investment period in Reliance Retail, we have been impressed by the company’s vision and extensive work to empower retailers across India through digitalization, as well as by its resilience and performance in spite of the pandemic and other disruptions. We look forward to continuing to work alongside the Reliance Retail team to support the company’s mission to build a more inclusive Indian retail economy.”
Gaurav Trehan, Head of Asia Pacific Private Equity and Head of India, KKR, also said, “Reliance Retail is a true corporate leader and innovator in India, and its differentiated model has the potential to digitalize and transform the country’s retail industry.”
Morgan Stanley served as the financial advisor to Reliance Retail Ventures Limited, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
Founded in 1976, KKR has approximately $519 billion in assets under management as of June 30, 2023. Reliance noted, “KKR’s follow-on investment in RRVL furthers its relationship with Reliance Industries Limited.”
KKR, founded in 1976, manages approximately $519 billion in assets as of June 30, 2023. KKR’s continued investment in RRVL strengthens its relationship with Reliance Industries Limited. In addition to its investment in RRVL, KKR is also an investor in Jio Platforms Limited, the telecom platform of RIL.
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