Mubadala Investment Company, the Abu Dhabi-based sovereign investor, on Thursday said it will invest Rs 6247.5 crore in Reliance Retail Ventures for a 1.4 percent stake, the fourth strategic investor to pick up a stake in the retail arm of Reliance Industries Ltd (RIL), within a month.
Reliance Retail Venture's subsidiary Reliance Retail operates India's largest retail business serving close to 640 million footfalls across its 12,000-odd
stores nationwide in 7000 cities.
The Mubadala deal values Reliance Retail Ventures at an equity value of Rs 4.285 lakh crore.
This is also the second investment by Mubadala in a Reliance enterprise. In June this year, it had said it will invest Rs 9094 crore in Jio Platforms, the digital services platform of RIL.
Mubadala’s funding is the latest in a series of investments in Reliance Retail over the last few weeks and the first investment in the firm by a sovereign wealth fund.
Private equity funds Silver Lake Partners, KKR and General Atlantic are the other investors who have committed funds to Reliance Retail Ventures.
Silver Lake has cumulatively invested Rs 9375 crore, directly, as well as through two of its funds. KKR has invested Rs 5550 crore and General Atlantic Rs 3675 crore.
The investments by these high profile investors are being as an endorsement of Reliance Retail's ability to lead a transformation of the Indian retail sector through technological innovations.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “I am happy to welcome Mubadala as a valued investor in Reliance Retail Ventures. We value the partnership with a knowledge-rich organization like Mubadala and acknowledge their confidence in our mission to strengthen the core of India’s retail sector – the millions of small retailers, merchants and shopkeepers – through the power of technology. Mubadala’s investment and guidance will be an invaluable support in this journey.”
Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: "We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Their vision is the inclusive transformation of India’s consumer economy through the power of digitization, creating opportunities and market access for millions of small businesses across the country, and we are committed to supporting the company’s continuing development."