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  5. KKR picks up another 0.25% in Reliance Retail Ventures for ₹2,069 crore

KKR picks up another 0.25% in Reliance Retail Ventures for ₹2,069 crore

KKR picks up another 0.25% in Reliance Retail Ventures for ₹2,069 crore
  • KKR hikes stake to 1.42% with this follow up investment in the retail business of RIL.
  • RRVL is valued at ₹8.36 lakh crore prior to the investment by KKR.
  • RRVL has already raised ₹47,285 crore from a clutch of global investors in 2020. The valuation of the retail business was at ₹4.2 lakh crore.

Global investment major KKR is investing yet another ₹2069.50 crore in Reliance Retail Ventures Limited (RRVL). The investment will be through an affiliate and RRVL is valued at a pre-money equity value of ₹ 8.36 lakh crore, which makes it among the top four companies by equity value in the country.

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 ₹ 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 ₹47,265 crore was done at a pre-money equity value of ₹4.21 lakh crore.

Commenting on the deal, Isha Mukesh Ambani, Director, Reliance Retail Ventures Limited, said, “We are pleased to receive continued support from KKR as an investor in Reliance Retail Ventures Limited. We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL’s vision and capabilities. We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge and operational expertise, in our journey towards driving transformation of the Indian retail sector."

RRVL, through its subsidiaries and associates, operates India's largest, fastest growing, and most profitable retail business serving 267 million loyalty customers with an integrated omni- channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.

RRVL’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers, empowering micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians. RRVL, through its New Commerce business, has digitized more than 3 million small and unorganised merchants. This will enable these merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.

KKR has approximately $519 billion in assets under management as of June 30, 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’s follow-on investment in RRVL furthers its relationship with Reliance Industries Limited. In addition to its investment in RRVL, KKR is also an investor in Jio Platforms Limited, a leading digital services platform and a subsidiary of Reliance Industries Limited.

Joe Bae, Co-CEO, KKR, said, “We are pleased to extend our relationship with Reliance Retail Ventures Limited. 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.”

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