US-based private equity group KKR & Co is gearing up to buy a Rs. 55,550 crore or roughly US $ 754 million stake in Reliance Retail Ventures Ltd. after Mukesh Ambani has already managed to raise US $ 20 billion from the likes of Facebook and Google for his other businesses.
This will give KKR a 1.28 per cent stake, valuing Reliance at a pre-money equity of Rs. 4.21 lakh crore or US $ 57 billion.
“Reliance Retail’s new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers move to shopping online and the company offers tools for Kiranas to be a critical part of the value chain,” said Harvey Kravis, Co-founder and Co-CEO of repeat investor in Reliance, KKR & Co.
This, however, is not KKR’s first investment in a Reliance subsidiary.
Earlier this year, KKR had announced an investment of Rs. 11,367 crore in Jio Platforms. Additionally, Silver Lake Partners had invested US $ 1 billion in a deal earlier this month in Reliance Retail for which it will hold 1.75 per cent stake. Silver Lake had also made a second investment of US $ 1.35 billion in Jio Platforms, much like KKR.
After Mukesh Ambani set his eyes on the retail market of India, he has made it the largest retail network with close to 12,000 stores and 640 million footfalls. RRVL reported a consolidated turnover of Rs. 1.62 lakh crore and a net profit of Rs. 5,448 crore for the year ended 31 March 2020.