General Atlantic invests again in Reliance Retail; this time Rs 3,675 crores

30th September 2020

30th September 2020

General Atlantic has invested another Rs 3,675 crore in Reliance Retail Ventures Limited (RRVL) for a 0.84% equity stake.

Earlier this year, General Atlantic had announced to invest Rs 6,598.38 crore in Jio Platforms.

The recent investment has increased the pre-money equity value of Reliance Retail to Rs 4.28 lakh crore which is slightly higher than Rs 4.21 lakh crore, the valuation of the previous two deals.

Earlier this month, KKR and Silver Lake had announced to invest Rs 5,500 crore and Rs 7,500 crore in Reliance Retail. They both are private equity firms in the US.

For FY 2020, the net profit of RRVL was Rs 5,448 crore and the consolidated turnover was Rs 162,936 crore. Reliance Retail has 12,000 stores across the country which receives footfalls of nearly 640 million people. 

In a statement, the oil-to-retail conglomerate said, Reliance Retail’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians.

Chairman and Managing Director of RIL, Mukesh Ambani said, “I am pleased to extend our relationship with General Atlantic as we work towards empowering both merchants and consumers alike, and ultimately transforming Indian Retail. 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,” added Ambani.

JioMart, an e-commerce platform of Reliance has entered into smartphones, consumer electronics, and fashion segments in an attempt to become the largest online retail entity.

“General Atlantic is thrilled to be backing Mukesh’s new commerce mission to drive substantial positive change in the country’s retail sector, which goes hand-in-hand with his vision to enable a digital India through the work of Jio Platforms. 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. We are honoured to again be partnering with the Reliance team to meaningfully accelerate India’s position in the global digital economy,” said Chief Executive Officer of General Atlantic, Bill Ford.

General Atlantic is a well-renowned growth equity firm with a track record of nearly 40-years in investing in the consumer, technology, healthcare sectors, and financial services.

Director of Reliance Retail, Isha Ambani said, “we are delighted to welcome General Atlantic as a valued partner as we continue to develop and galvanize the Indian Retail ecosystem for the benefit of all Indian consumers and merchants. 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.”

 

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