Mukesh Ambani’s Reliance Retail gets another investor on-board; General Atlantic to invest Rs 3,675 crore

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Updated: Oct 01, 2020 8:27 AM

September 30, 2020: Mukesh Ambani’s Reliance Industries Ltd has bagged another cheque for its Reliance Retail Ventures, this time from General Atlantic. The global growth equity firm said that it will invest Rs 3,675 crore in the retail venture.

mukesh ambani reliance retail received 7,500 crore from silver lake for 1.75 percent stakeJioMart had signed an agreement with Infibeam to use its solutions for e-commerce and digital payments service.

September 30, 2020: Adding to the list of global investors, Mukesh Ambani’s Reliance Retail on Wednesday morning announced that General Atlantic will invest Rs 3,675 crore into the firm for a 0.84% equity stake on a fully diluted basis. The subsidiary of Reliance Industries Ltd (RIL), has been valued at a pre-money equity value of ₹ 4.285 lakh crore. This is the second investment by General Atlantic into Reliance Industries after a Rs 6,598.38 crore investment in Jio Platforms earlier this year. The deal, announced on September 30, 2020, when compared to previous investors, KKR and Silver Lake, values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore against Rs 4.21 lakh crore.

Reliance Retail has now managed to get three investors, who have collectively poured in over Rs 16,675 crore into the firm. (Update: With Silver Lake’s additional investment, the total value of the investment into Reliance Retail has gone up to Rs 18,550 crore) “We look forward to leveraging General Atlantic’s extensive expertise at the intersection of technology and consumer businesses, and two decades of experience investing in India, as we create a disruptive New Commerce platform to redefine retail in the country,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries. Reliance Retail is a fast growing retail business, already serving 640 million footfalls across its 12,000 stores across the country.

The retail unit of RIL says that its new commerce strategy has started a transformational digitalization of small and unorganised merchants. Mukesh Ambani plans to take technology to small mom & pop stores across the country in an effort to add them to their chain of stores offering online and offline shopping. ““General Atlantic is thrilled to be backing Mukesh’s New Commerce mission to drive substantial positive change in the country’s retail sector, which goes hand-in-hand with his vision to enable a Digital India through the work of Jio Platforms,” said Bill Ford, Chief Executive Officer of General Atlantic.

General Atlantic is known for having invested in companies including Airbnb, Alibaba, Ant Financial, Box, ByteDance, Facebook, Slack, Snapchat, Uber and other global technology leaders.Reliance Retail reported a consolidated turnover of Rs 1,62,936 crore in the previous fiscal year and a net profit of Rs 5,448 crore.

(This Story was first published on www.financialexpress.com on September 30, 2020)

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