KKR Commits ₹2,069.50 Crore Investment in Reliance Retail Ventures Limited

Mumbai, 11th September 2023: Reliance Retail Ventures Limited (“RRVL”) has unveiled a significant development as global investment firm KKR, through an affiliate, commits to a substantial investment of ₹2,069.50 crore into RRVL, a subsidiary of Reliance Industries Limited. This investment has effectively valued RRVL at a pre-money equity valuation of ₹8.361 lakh crore, securing its place among the top four companies in the nation in terms of equity value.

KKR’s additional investment will grant the firm an increased equity stake of 0.25% in RRVL, calculated on a fully-diluted basis. When combined with KKR’s prior investment of ₹5,550 crore in RRVL in 2020, this new commitment will elevate KKR’s total equity stake in RRVL to 1.42% on a fully-diluted basis. It is noteworthy that RRVL’s previous fundraising round in 2020 saw various global investors collectively contributing ₹47,265 crore at a pre-money equity valuation of ₹4.21 lakh crore.

RRVL, along with its subsidiaries and associates, operates India’s largest, fastest-growing, and most profitable retail enterprise. Serving a loyal customer base of 267 million individuals, RRVL boasts an integrated omnichannel network comprising over 18,500 stores and digital commerce platforms across diverse sectors, including grocery, consumer electronics, fashion & lifestyle, and pharmaceuticals.

RRVL’s overarching vision aims to revolutionize the Indian retail landscape through an inclusive strategy. This strategy focuses on serving millions of customers, empowering micro, small, and medium enterprises (MSMEs), and fostering collaborations with global and domestic companies. The ultimate goal is to deliver substantial benefits to Indian society while generating and preserving employment opportunities for millions of Indians.

One of RRVL’s significant initiatives, its New Commerce business, has successfully digitized over 3 million small and unorganized merchants. This initiative equips these merchants with technological tools and an efficient supply chain infrastructure, enabling them to provide enhanced value to their customers.

Founded in 1976, KKR boasts approximately $519 billion in assets under management as of June 30, 2023. KKR has a rich history of nurturing leading global enterprises, particularly in technology and digital transformation. This investment aligns with KKR’s track record of supporting prominent corporations in India.

Moreover, KKR’s continued investment in RRVL deepens its association with Reliance Industries Limited. In addition to its stake in RRVL, KKR also maintains investments in Jio Platforms Limited, a leading digital services platform and subsidiary of Reliance Industries Limited.

Isha Mukesh Ambani, Director of Reliance Retail Ventures Limited, expressed her satisfaction with KKR’s ongoing support. She emphasized the strong partnership between RRVL and KKR, highlighting KKR’s unwavering belief in RRVL’s vision and capabilities.

Joe Bae, Co-CEO of KKR, commended RRVL’s resilience and performance, particularly in navigating challenges like the pandemic. He reaffirmed KKR’s commitment to supporting RRVL in its mission to revolutionize the Indian retail economy.

Gaurav Trehan, Head of Asia Pacific Private Equity and Head of India at KKR, underscored RRVL’s pioneering role in digitalizing and transforming India’s retail industry. He expressed eagerness to collaborate further with RRVL as it embarks on its growth journey.

KKR’s investment in RRVL primarily originates from its Asian Fund IV. The transaction is contingent on customary regulatory approvals and other standard procedures.

Morgan Stanley served as the financial advisor to Reliance Retail Ventures Limited, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell provided legal counsel.