KKR, a global investment firm, has announced an investment of ₹2,069.50 crore into Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited. This investment values RRVL at a pre-money equity value of ₹8.361 lakh crore, making it one of the top four companies in India by equity value.
KKR’s follow-on investment will result in an additional equity stake of 0.25% in RRVL on a fully-diluted basis. When combined with its previous investment of ₹5,550 crore in RRVL in 2020, KKR’s total equity stake in RRVL will reach 1.42% on a fully-diluted basis. RRVL had previously raised ₹47,265 crore from various global investors in 2020 at a pre-money equity value of ₹4.21 lakh crore.
Reliance Retail Ventures Limited, along with its subsidiaries and associates, operates India’s largest, fastest-growing, and most profitable retail business. It serves 267 million loyalty customers through an integrated omni-channel network of over 18,500 stores and digital commerce platforms. RRVL’s business spans across various categories, including grocery, consumer electronics, fashion & lifestyle, and pharmaceuticals.
RRVL’s vision is to revitalize the Indian retail sector through an inclusive strategy. It aims to serve millions of customers, empower micro, small, and medium enterprises (MSMEs), and collaborate with global and domestic companies as a preferred partner. The goal is to deliver significant benefits to Indian society while generating employment opportunities for millions of Indians. RRVL’s New Commerce business has digitized over 3 million small and unorganized merchants, enabling them to leverage technology tools and efficient supply chain infrastructure.
Isha Mukesh Ambani, Director of Reliance Retail Ventures Limited, expressed appreciation for KKR’s continued support and strong belief in RRVL’s vision and capabilities. She highlighted the importance of the partnership with KKR in driving the transformation of the Indian retail sector.
Joe Bae, Co-CEO of KKR, praised RRVL’s vision, digitalization efforts, resilience, and performance, especially in challenging times like the pandemic. He emphasized KKR’s commitment to supporting RRVL’s mission to build a more inclusive Indian retail economy.
Gaurav Trehan, Head of Asia Pacific Private Equity and Head of India at KKR, acknowledged Reliance Retail as a corporate leader and innovator in India, with the potential to transform the country’s retail industry through digitalization.
KKR’s investment primarily comes from its Asian Fund IV. The transaction is subject to regulatory and customary approvals.
Morgan Stanley acted as the financial advisor to Reliance Retail Ventures Limited, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell provided legal counsel for the transaction.