KKR’S FOLLOW-ON INVESTMENT IN RRVL REAFFIRMS
ITS BELIEF IN THE MARKET OPPORTUNITY AND RELIANCE RETAIL'S BUSINESS
MODEL
Reliance Retail Ventures Limited (“RRVL”) announced today that
global investment firm KKR, through an affiliate, will invest ₹
2,069.50 crore into RRVL, a subsidiary of Reliance Industries. This
investment values RRVL at a pre-money equity value of ₹ 8.361 lakh
crore, which makes it among the top four companies by equity value
in the country.
KKR’s follow-on investment will translate into an additional
equity stake of 0.25% in RRVL on a fully-diluted basis. This,
combined with its stake from its investment of ₹ 5,550 crore in
RRVL in 2020, will take its total equity stake in RRVL to 1.42% on
a fully-diluted basis. The previous fund-raise round by RRVL in
2020 from various global investors of an aggregate amount of ₹
47,265 crore was done at a pre-money equity value of ₹ 4.21 lakh
crore.
RRVL, through its subsidiaries and associates, operates India's
largest, fastest growing, and most profitable retail business
serving 267 million loyalty customers with an integrated
omni-channel network of over 18,500 stores and digital commerce
platforms across grocery, consumer electronics, fashion &
lifestyle, and pharma consumption baskets.
RRVL’s vision is to galvanize the Indian retail sector through
an inclusive strategy serving millions of customers, empowering
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. RRVL, through its
New Commerce business, has digitized more than 3 million small and
unorganised merchants. This will enable these merchants to use
technology tools and an efficient supply chain infrastructure to
deliver a superior value proposition to their own customers.
Founded in 1976, KKR has approximately $519 billion in assets
under management as of June 30, 2023. KKR has a long history of
building leading global enterprises that are at the forefront of
technology and digital transformation, including in the areas of
consumer retail and eCommerce, as well as a track record of
supporting leading corporations in India. KKR’s follow-on
investment in RRVL furthers its relationship with Reliance
Industries Limited. In addition to its investment in RRVL, KKR is
also an investor in Jio Platforms Limited, a leading digital
services platform and a subsidiary of Reliance Industries.
Ms Isha Mukesh Ambani, Director, Reliance Retail Ventures
Limited, said, “We are pleased to receive continued support
from KKR as an investor in Reliance Retail Ventures Limited. We
highly value our deepening partnership with KKR, and their latest
investment in RRVL after their previous investment further
reinforces their strong belief in RRVL’s vision and capabilities.
We look forward to continued engagement with KKR and to benefit
from their global platform, industry knowledge and operational
expertise, in our journey towards driving transformation of the
Indian retail sector.”
Mr Joe Bae, Co-CEO, KKR, said, “We are pleased to extend
our relationship with Reliance Retail Ventures. Throughout our
investment period in Reliance Retail, we have been impressed by the
company’s vision and extensive work to empower retailers across
India through digitalization, as well as by its resilience and
performance in spite of the pandemic and other disruptions. We look
forward to continuing to work alongside the Reliance Retail team to
support the company’s mission to build a more inclusive Indian
retail economy.”
Mr Gaurav Trehan, Head of Asia Pacific Private Equity and
Head of India, KKR, added, “Reliance Retail is a true corporate
leader and innovator in India, and its differentiated model has the
potential to digitalize and transform the country’s retail
industry. We are pleased to have the opportunity to continue
collaborating with this team and pursue the growth opportunities
ahead.”
KKR’s investment comes primarily from its Asian Fund IV. The
transaction is subject to regulatory and other customary
approvals.
Morgan Stanley acted as financial advisor to Reliance Retail
Ventures Limited and Cyril Amarchand Mangaldas and Davis Polk &
Wardwell acted as legal counsels.
About Reliance Industries Limited
(RIL)
RIL is India’s largest private sector company, with a
consolidated revenue of ₹ 976,524 crore (US$118.8 billion) and net
profit of ₹ 74,088 crore (US$9.0 billion) for the year ended March
31, 2023. RIL’s activities span hydrocarbon exploration and
production, petroleum refining and marketing, petrochemicals,
advanced materials and composites, renewables (solar and hydrogen),
retail and digital services.
Currently ranking 88th, RIL is the largest private sector
company from India to feature in Fortune’s Global 500 list of
“World’s Largest Companies” for 2023. The company stands 45th in
the Forbes Global 2000 rankings of “World’s Largest Public
Companies” for 2023 - top-most among Indian companies. RIL has been
ranked among the world's 20 best companies to work with, highest
amongst Indian companies in Forbes’ World's Best Employers for
2022. It features among LinkedIn’s “Top Companies 2023: The 25 Best
Workplaces To Grow Your Career In India”. Website: www.ril.com
About Reliance Retail Ventures
Limited
RRVL, through its subsidiaries and affiliates, operates an
integrated omni-channel network of over 18,500 stores and digital
commerce platforms across Grocery, Consumer Electronics, Fashion
& Lifestyle and Pharma consumption baskets and has partnered
with over 3 million merchants through its New Commerce initiative.
Reliance Retail Limited, a subsidiary of RRVL, is the only Indian
retailer in the global Top 100 and amongst the fastest growing
retailers globally as per Deloitte's Global Powers of Retailing
2023.
RRVL reported a consolidated turnover of ₹ 260,364 crore ($ 31.7
billion) and net profit of ₹ 9,181 crore ($ 1.1 billion) for the
year ended March 31, 2023.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
For additional information about Global Atlantic Financial Group,
please visit Global Atlantic Financial Group’s website at
www.globalatlantic.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230911917389/en/
Media: Manish Bhatia
Reliance Retail Ventures Limited E-mail:
manish.b.bhatia@ril.com
KKR Asia Pacific Wei Jun Ong WeiJun.Ong@kkr.com
AdFactors (For KKR India) George Smith Alexander
George.Smith@adfactorspr.com
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