KKR Boosts Investment in Reliance Retail Ventures Limited

Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries, has received a new investment from global investment firm KKR.

Through an affiliate, KKR will invest 2,069.50 crore rupees (about $250 million) into RRVL, increasing its equity stake from 1.17% to 1.42%, KKR said in a Monday (Sept. 11) press release. This investment values RRVL at a pre-money equity value of 8.361 lakh crore rupees (about $100 billion), making it one of the top four companies in India by equity value.

RRVL operates India’s largest and fastest-growing retail business, serving 267 million customers, according to the release. It has an integrated omnichannel network of over 18,500 stores and digital commerce platforms in various sectors including grocery, consumer electronics, fashion and lifestyle, and pharmaceuticals.

RRVL’s vision is to galvanize the Indian retail sector by serving millions of customers, empowering micro, small, and medium enterprises (MSMEs), and collaborating with global and domestic companies, the release said.

The investment from KKR comes as a follow-on to its previous investment in RRVL in 2020, per the release. The investment will further strengthen the partnership between KKR and Reliance Industries, as KKR is also an investor in Jio Platforms Limited, another subsidiary of Reliance Industries.

RRVL’s New Commerce business has digitized over 3 million small and unorganized merchants, enabling them to leverage technology tools and an efficient supply chain infrastructure to offer better value to their customers, according to the press release.

“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,” Isha Mukesh Ambani, director of Reliance Retail Ventures Limited, said in the release.

Joe Bae, co-CEO of KKR, added: “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.”

Reliance Industries announced plans earlier this year to take Jio Financial Services, its digital financial services unit, public on the Mumbai market this fall.