“On Wednesday, Reliance Industries Limited and Reliance Retail Ventures Limited announced that General Atlantic would invest Rs 3,675 crore (US$ 498.58 million) in RRVL, a Reliance Industries subsidiary. At a pre-money equity valuation of Rs 4.285 lakh crore (US$ 58.13 billion), this investment values Reliance Retail. The investment by General Atlantic would translate on a completely diluted basis into a 0.84 percent equity interest in RRVL.
This marks General Atlantic’s second investment in a Reliance Industries subsidiary, following a RS 6,598.38 crore (US$ 895.18 million) investment in Jio Platforms announced earlier this year.
In the past few weeks, Reliance Retail raised a combined Rs 13,050 crore (US$ 1.77 billion) from private equity company Silver Lake Partners and US buyout company KKR & Co in exchange for 1.75% and 1.28% stakes, respectively.
Mr. Mukesh Ambani, Chairman and Managing Director of Reliance Industries, 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.”
Mr. Bill Ford, Chief Executive Officer of General Atlantic, said, “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 together 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 honored to again be partnering with the Reliance team to meaningfully accelerate India’s position in the global digital economy.”
With approximately 12,000 outlets, Reliance is India’s biggest retailer and has been looking to expand its so-called new e-commerce venture as it vies for market share in India’s rising retail space.
Morgan Stanley was Reliance Retail’s financial advisor, and Cyril Amarchand Mangaldas and Davis Polk & Wardwell were legal advisors. For General Atlantic, Shardul Amarchand Mangaldas & Co and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel.”