KKR picks 1.28% stake in India’s Reliance Retail Ventures for $750m

Mukesh Ambani Photo: Reuters.

Global investment firm KKR & Co. will invest ₹5,550 crore into Reliance Retail Ventures Limited (RRVL) for a 1.28% equity stake. RRVL is a wholly owned subsidiary of Reliance Industries Ltd.

The investment values Reliance Retail at an equity value of ₹4.21 lakh crore, said RIL in a press statement.

On 9 September, California-based private equity fund Silver Lake, picked up 1.75% stake in RRVL for ₹7,500 crore. This also marks the second investment by KKR in a subsidiary of RIL following a ₹11,367 crore investment in Jio Platforms announced earlier this year.

Mint had on 10 September reported that Reliance Retail Ventures Ltd, is in talks with KKR & Co., to raise over ₹5000 crore.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We look forward to working with KKR’s global platform, industry knowledge and operational expertise across our digital services and retail businesses.”

Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide.

Reliance Retail, through its New Commerce strategy, has started a transformational digitalization of small and unorganized merchants to expand its network to over 20 million of these merchants. This will enable the merchants to

use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.

Henry Kravis, Co-Founder and Co-CEO of KKR, said, “Reliance Retail’s new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers move to shopping online and the company offers tools for Kiranas to be a critical part of the value chain. We are thrilled to support Reliance Retail in its mission to become India’s leading omnichannel retailer and ultimately to build a more inclusive Indian retail economy.”

KKR is making its investment from its Asia private equity funds. The transaction is subject to regulatory and other customary approvals.

Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.

This article was first published on livemint.com

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.