KKR Commits INR 2,069.50 Crore to Elevate Stake in Reliance Retail to 1.42%

In a strategic move, Reliance Retail Ventures Limited (RRVL) announced a significant investment from global investment firm KKR, solidifying their partnership and fostering growth opportunities within the Indian retail industry.

KKR's Significant Investment in Reliance Retail

Reliance Retail Ventures Limited (RRVL) revealed that KKR is set to invest INR 2,069.50 crore in RRVL, a subsidiary of Reliance Industries Limited (RIL).

This substantial investment not only demonstrates KKR's confidence in RRVL but also reaffirms their commitment to fostering growth within the Indian retail sector.

KKR's investment comes primarily from its Asian Fund IV, underlining the significance of the Indian market in their global investment strategy.

Impact on Reliance Retail Ventures Limited

The infusion of INR 2,069.50 crore elevates RRVL's pre-money equity valuation to INR 8.361 lakh crore. This places RRVL among the top four corporations in India by equity value, highlighting its influential position within the country's corporate landscape.

On a fully diluted basis, KKR's follow-on investment will increase its equity holding in RRVL by 0.25%. When combined with their earlier INR 5,550 crore investment in RRVL in 2020, KKR's total equity stake in RRVL will rise to 1.42% on a fully diluted basis.

Future Collaborations and Industry Transformation

Ms. Isha Mukesh Ambani, Director of Reliance Retail Ventures Limited, expressed her appreciation for KKR's continued support and deepening partnership with RRVL. She emphasized KKR's belief in RRVL's vision and capabilities, highlighting their commitment to transforming the Indian retail sector.

The collaboration with KKR provides RRVL access to a global platform, industry expertise, and operational excellence, enhancing their journey towards innovation and digitalization.

Mr. Joe Bae, Co-CEO of KKR, commended RRVL's vision and its efforts to empower Indian retailers through digitalization. Despite challenges posed by the pandemic and other disruptions, RRVL has demonstrated resilience and exceptional performance. KKR looks forward to supporting RRVL in its mission to create a more inclusive Indian retail economy.

Mr. Gaurav Trehan, Head of Asia Pacific Private Equity and Head of India at KKR, recognized RRVL as a pioneering corporate leader and innovator in India. He highlighted RRVL's unique model, capable of digitalizing and transforming the country's retail industry.

The collaboration between KKR and RRVL opens doors to growth opportunities that will contribute to the evolution of the Indian retail landscape.

KKR's substantial investment in Reliance Retail Ventures Limited reaffirms their commitment to the Indian retail industry's transformation. This partnership underscores the potential for innovation and growth in India's retail sector.