US private equity firm General Atlantic will invest Rs 3,675 crore in Reliance Retail. The firm will pick 0.84 per cent stake in the retail arm of Mukesh Ambani's Reliance. It is the third investment for Reliance Retail following KKR's investment of $754 million and Silver Lake Partners' $1 billion.
This investment values Reliance Retail at a pre-money equity value of Rs 4.28 lakh crore, the company stated.
General Atlantic is one of the investors in Jio Platforms where it had pumped in Rs 6,598.38 crore earlier this year.
Mukesh Ambani, Chairman and MD of Reliance Industries said that he was pleased to extend his RIL's relationship with General Atlantic. "Like Reliance Retail, General Atlantic believes in the fundamental ability of digital enablement to drive progress, growth, and inclusion across India and the world. We look forward to leveraging General Atlantic's extensive expertise at the intersection of technology and consumer businesses, and two decades of experience investing in India, as we create a disruptive New Commerce platform to redefine retail in the country," he said.
Isha Ambani, Director of Reliance Retail said that the two companies will continue to develop and galvanise the Indian retail ecosystem. "General Atlantic has tremendous knowledge in the retail space developed by working with leading consumer and retail companies globally over the years and we hope to benefit from that as we progress on our journey," she said.
General Atlantic CEO Bill Ford said that the company backs Ambani's vision to drive positive change in the retail sector. "General Atlantic shares Reliance Industries' foundational belief in the power of technology to foster transformative growth, and we are excited by the immense potential of the full Reliance ecosystem," he said.
This investment comes after Silver Lake Partners pumped in Rs 7,500 crore for 1.75 per cent stake in Reliance Retail in early September. Private equity firm KKR said it would invest Rs 5,550 crore in RIL's retail arm for 1.28 per cent stake. According to reports, Reliance is also in talks with Mubadala for an investment of around Rs 7,500 crore.
Reliance Retail Ltd is a subsidiary of RRVL. It has 12,000 stores nationwide.