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General Atlantic, TPG In Talks With Reliance Retail To Invest $1 bn Each: Report

 


Global investors which made a beeline to invest in Reliance Industries Ltd’s (RIL’s) digital arm – Jio Platforms – are now vying for billionaire Mukesh Ambani-controlled retail wing of Reliance- Reliance Retail Ventures Ltd Ltd (RRVL).

After Jio investors Silver Lake and KKR wrote cheques for RRVL too, it is being reported that private equity (PE) firms General Atlantic and TPG are in talks with RRVL to invest $1 billion each in the latter, said an ET report.

That’s not all, yet another global PE firm Advent International showed interest in investing in Reliance Retail, which the report said cannot be confirmed.

The development comes close on the heels of RRVL's September 23 announcement that global investment company KKR will infuse Rs 5,550 crore in the RIL subsidiary. This investment valued Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore. KKR’s investment will translate into a 1.28 per cent equity stake in RRVL on a fully diluted basis.

Before that US-based PE firm, Silver Lake announced that it would invest Rs 7,500 crore in Reliance Retail for 1.75 per cent stake in the company. This was the second billion-dollar investment by Silver Lake in a RIL subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year.

Global investors’ interest in the retail wing of RIL is piqued as it is set to emerge as a robust player of the $800-million Indian retail market, expected to touch $1.3 trillion in the next few years.

Reliance is set to emerge a dominant player in the field with its brick-and-mortar presence and JioMart digital offering. RRVL aims to use the collective strength of its 12,000 physical outlets along with JioMart and enlist millions of Kirana stores as last-mile delivery agents.

JioMart started its operations in 200 cities in May with the delivery of food and grocery. It also plans to fashion and electronic segments to take on e-commerce giants Amazon and Walmart owned Flipkart.


Sandip Ginodia , CEO

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