Reliance Industries’ subsidiaries, Jio Platforms and Reliance Retail, seem to be following the same script: Get big-ticket investors to drive growth.
Jio Platforms had 13 investors investing $20.6 billion (Rs 1.52 lakh crore) investing in it. Out of the 13, four have invested in Reliance Retail too. Silver Lake, General Atlantic and KKR had ploughed money into the retail of the Reliance Industries.
And now, as predicted in our report here, Mubadala, has become the fourth investor in Reliance Retail.
Mubadala Investment Company (Mubadala), the Abu Dhabi-based sovereign investor, will invest Rs 6,247.5 crore ($852.84 million) into Reliance Retail. The investment values Reliance Retail at a pre money equity value of Rs 4.285 lakh crore. Mubadala’s investment will translate into a 1.40% equity stake in Reliance Retail on a fully diluted basis.
Mubadala had earlier chipped in with $1.2 billion investment in Jio Platforms.
Reliance Retail, through its New Commerce strategy, has started the digitalization of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants. This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their customers.
Reliance Retail has so far raised Rs 24, 847.5 crore
All 13 investors who had poured huge sums of money in Jio Platforms have been offered a chance to explore investing in the retail unit.
Reliance Retail has since September raised Rs 24,847.5 crore by selling 5.65% of its stake.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, in a statement said: “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.”
It may be recalled that addressing shareholders at Reliance Industries 43rd annual general meeting recently, Mukesh Ambani had said “Reliance Retail has received strong interest from strategic and financial investors.”
Ambani explained his plans to add newer categories like electronics, fashion, pharmaceutical and healthcare into its omni-channel venture, JioMart.
Jio Mart is positioned to take on Walmart-backed Flipkart and the other behemoth in the business Amazon.