Bae notes Reliance Retail’s work to empower retailers across India
Global investment firm KKR will invest Rs.2,069.50 crore in Reliance Retail Ventures Limited (RRVL) which operates one of India’s largest retail businesses, serving 267 million customers with an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
KKR’s follow-on investment will translate into an additional equity stake of 0.25% in RRVL on a fully-diluted basis. This, combined with its stake from its investment of Rs.5,550 crore in RRVL in 2020, will take its total equity stake in RRVL to 1.42% on a fully-diluted basis.
The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of Rs.47,265 crore was done at a pre-money equity value of Rs.4.21 lakh crore.
Founded in 1976, KKR has approximately US$519 billion in assets under management as of 30 June 2023. KKR has a long history of building leading global enterprises that are at the forefront of technology and digital transformation, including in the areas of consumer retail and eCommerce, as well as a track record of supporting leading corporations in India.
KKR Co-CEO Joe Bae said on 11 Sept 2023, “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.”
“Reliance Retail’s differentiated model has the potential to digitalize and transform the country’s retail industry. We are pleased to have the opportunity to continue collaborating with this team and pursue the growth opportunities ahead,” added Gaurav Trehan, Head of Asia Pacific Private Equity and Head of India, KKR.
KKR’s investment comes primarily from its Asian Fund IV. The transaction is subject to regulatory and other customary approvals. fiinews.com
