Reliance Industries Limited and Reliance Retail Ventures Limited announced Wednesday that General Atlantic will invest ₹ Rs 3,675 crore in RRVL, a subsidiary of Reliance Industries. This investment values Reliance Retail at a pre-money equity value of ₹ 4,285 million lakh rupees. General Atlantic’s investment will result in a 0.84% equity interest in RRVL on a fully diluted basis.
This marks General Atlantic’s second investment in a Reliance Industries subsidiary, following a ₹ Rs 6,598.38 crore of investment in Jio Platforms announced earlier this year.
Reliance Retail has compiled a combination ₹Rs 13,050 crore in recent weeks from private equity company Silver Lake Partners and US acquisition firm KKR & Co in exchange for stakes of 1.75 per cent and 1.28 per cent, respectively.
Mukesh Ambani, President and CEO of Reliance Industries, said: “I am pleased to extend our relationship with General Atlantic as we work to empower both merchants and consumers and ultimately transform Indian Retail. Like Reliance Retail, General Atlantic believes in the fundamental ability of digital enablement to drive progress, growth and inclusion in India and the world. We look forward to leveraging General Atlantic’s vast experience at the intersection of technology and consumer business, and two decades of experience investing in India, as we create a disruptive New Trade platform to redefine retail in the country.
Bill Ford, CEO of General Atlantic, said: “General Atlantic is delighted to support Mukesh’s New Commerce mission to drive substantial positive change in the nation’s retail sector, which goes hand in hand with his vision to enable an India digital through the work of Jio Platforms. General Atlantic shares Reliance Industries’ core belief in the power of technology to drive transformative growth, and we are excited about the immense potential of the entire Reliance ecosystem. We are honored to once again partner with the Reliance team to significantly accelerate India’s position in the global digital economy. “
Reliance is India’s largest retailer with approximately 12,000 stores and has been looking to expand its new e-commerce business while competing for market share in India’s growing retail space.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal advisors. Shardul Amarchand Mangaldas & Co and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as General Atlantic’s legal counsel.
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