Global investment firm KKR has announced an investment of ₹ 2,069.50 crore in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited. This investment values RRVL at a pre-money equity value of ₹ 8.361 lakh crore, making it one of the top four companies by equity value in India.
KKR’s investment will increase its equity stake in RRVL from 1.17% to 1.42% on a fully-diluted basis. This follows KKR’s previous investment of ₹ 5,550 crore in RRVL in 2020.
RRVL operates India’s largest and most profitable retail business, serving 267 million loyalty customers through an integrated omnichannel network of over 18,500 stores and digital commerce platforms. The company’s vision is to transform the Indian retail sector by serving millions of customers, empowering micro, small and medium enterprises (MSMEs), and working closely with global and domestic companies.
KKR, founded in 1976, manages approximately $519 billion in assets as of June 30, 2023. The firm has a history of building leading global enterprises and supporting corporations in India. KKR’s follow-on investment in RRVL reaffirms its belief in the market opportunity and RRVL’s business model.
Isha Mukesh Ambani, Director of RRVL, expressed her pleasure at KKR’s continued support and valued the deepening partnership. Joe Bae, Co-CEO of KKR, also expressed his satisfaction with the extended relationship with RRVL and praised the company’s vision and resilience.
This deal follows a series of investments by global investors in RRVL, reflecting the robust growth prospects of India’s retail sector. The increased stake by KKR further strengthens the relationship between the two companies and sets the stage for future collaborations.
This investment by KKR in RRVL is not just a transaction; it’s a strategic partnership that will fuel growth and create value for both companies. It also underscores the attractive investment opportunities present in India’s rapidly evolving retail sector.