KKR boosts investment in Reliance Retail, elevates stake to 1.42%

Reliance introduces swappable, multipurpose EV batteries for clean energy

KKR boosts investment in Reliance Retail

New Delhi, September 12, 2023 – Leading global investment firm, KKR, is set to fortify its stake in Reliance Retail Ventures Ltd (RRVL) from 1.17% to 1.42% with a substantial infusion of ₹2,069 crore through one of its affiliates. KKR initially made a significant investment of ₹5,550 crore in 2020, marking its foray into the expansive world of Indian retail, encompassing various sectors such as grocery, consumer electronics, apparel, footwear, online commerce, and jewelry.

In a filing to stock exchanges on Monday, Reliance Industries Ltd (RIL) disclosed that RRVL had a pre-money equity valuation of ₹8.361 trillion for this transaction, cementing its status as one of India’s top four companies by equity value. According to the statement from RIL, “KKR’s additional investment will result in a 0.25% increase in RRVL’s equity stake on a fully-diluted basis. This, combined with their previous ₹5,550 crore investment in RRVL in 2020, brings their total equity stake in RRVL to 1.42% on a fully-diluted basis.”

Notably, KKR has also invested in Jio Platforms Ltd, a digital services platform and subsidiary of RIL, with a substantial commitment of ₹11,367 crore in 2020.

KKR’s investment in RRVL is primarily sourced from its Asian Fund IV. In a statement, Joe Bae, co-CEO of KKR, expressed their ongoing commitment, saying, “Throughout our investment journey with Reliance Retail, we have been consistently impressed by the company’s visionary approach and its dedication to digitalizing India’s retail landscape. We also commend its resilience and exceptional performance, even amidst challenges like the COVID-19 pandemic. We eagerly anticipate continuing our collaboration with the Reliance Retail team to further their mission of fostering a more inclusive Indian retail economy.”

This follow-on investment by KKR follows the recent announcement by Qatar Investment Authority, which invested ₹8,278 crore in RRVL for a 0.99% equity stake last month through its wholly-owned subsidiary. This investment valued RRVL at a pre-money equity value of ₹8.278 trillion or $100 billion.

RRVL, along with its subsidiaries and associates, boasts the largest retail business in India, serving a staggering 267 million loyal customers through an integrated omnichannel network of over 18,500 stores and digital commerce platforms.

Isha Mukesh Ambani, director of RRVL, expressed the company’s appreciation for KKR’s deepening partnership, saying, “We highly value our growing alliance with KKR, and their latest investment in RRVL, following their previous commitment, underscores their unwavering belief in RRVL’s vision and capabilities. We eagerly anticipate further collaboration with KKR, leveraging their global platform, industry expertise, and operational proficiency, as we continue our mission to revolutionize the Indian retail sector.” RRVL has garnered substantial support from prominent global investors, solidifying its position as a dominant force in India’s organized retail landscape.

About Reliance Retail:

Reliance Retail, a subsidiary of Reliance Industries, is a prominent Indian retail corporation. Established in 2006, it holds the distinction of being India’s leading retailer in terms of revenue. Its retail establishments provide a diverse array of products, including food, groceries, clothing, footwear, toys, home improvement items, electronics, as well as agricultural tools and supplies.

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