New Delhi: Reliance Retail Ventures Ltd (RRVL), run by India’s richest man Mukesh Ambani, raised Tuesday Rs 5,512.50 crore from Abu Dhabi Investment Authority (ADIA). With this venture Reliance Retail took the total fundraise to Rs 37,710 crore in less than four weeks. “ADIA’s investment will translate into a 1.20 per cent equity stake,” the Indian firm said in a statement.
The investment values RRVL, the retail arm of Reliance Industries Ltd, at a pre-money equity value of Rs 4.285 lakh crore.
“With this investment, RRVL has raised Rs 37,710 crore from leading global investors. Among them are Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks,” the statement said.
The investments equip Reliance Retail with funds to compete in both offline and online formats. The investments come as India’s retail sector prepares for the upcoming festival season. It would help Reliance to launch an assault on rivals such as Walmart-owned e-commerce company ‘Flipkart’ and ‘Amazon’.
Reliance Retail Ltd, a subsidiary of RRVL, operates India’s largest, fastest-growing and most profitable retail business. It spans across supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets and online grocery store ‘JioMart.’
Reliance Retail operates about 12,000 stores in nearly 7,000 towns. , The approximate footfall is 640 million across core categories of grocery, consumer electronics and apparel.
Ambani, CMD of Reliance Industries, said, “The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational new commerce business model that it is rolling out.
Reliance, he said, hopes to benefit from ADIA’s strong track record of over four decades of value creation globally.