American Private Equity Investor Silver Lake to Invest Rs 7,500 Crore in Reliance Retail

American Private Equity Investor Silver Lake to Invest Rs 7,500 Crore in Reliance Retail

• Silver Lake’s investment will translate into a 1.75% stake in RRVL on a fully diluted basis.
• Ambani informed shareholders that Reliance Retail had received strong interest from financial investors.
• Reliance’s New Commerce strategy could become the disruptor of this decade.

On Tuesday, it was announced by Reliance that the US private equity firm and the global leader in large-scale technology investing, Silver Lake will be investing an amount of Rs 7,500 crore into Reliance’s subsidiary, RRVL (Reliance Retail Ventures Ltd) for a 1.75% stake. The investment will value the retail business of Reliance at an amount of Rs 4.21 lakh crore. The investment by Silver Lake will translate into a 1.75 percent equity stake in RRVL on a fully diluted basis. 

This investment will mark the second billion-dollar investment which is done by Silver Lake in a Reliance Industry’s subsidiary after the $1.35 billion investment that was done in Jio Platforms earlier last year.

Reliance has been operating India’s largest retail business of onset 12,000 stores nationwide with a 640 million football.

Commenting upon the transaction with Silver Lake, Mukesh Ambani, the chairman and managing director of Reliance Industries said that joining hands with Silver Lake will be adding to its transformational effort of constructing a comprehensive partnership with millions of small merchants while providing value to Indian consumers across the country in the Indian retail sector.

Ambani said, “We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian retail”.

The Co-CEO and managing partner of Silver Lake, Egon Durban said that Mukesh Ambani along with his team at Reliance has created an outstanding world leader in retail and technology through their courageous vision, commitment to societal benefits, innovation excellence, and relentless execution.

“The success of JioMart in such a short time span, especially while India, along with the rest of the world, battles theCOVID-19 pandemic is truly unprecedented, and the most exciting growth phase has just begun. Reliance’s new commerce strategy could become the disruptor of this decade. We are thrilled to have been invited to partner with Reliance in their mission for Indian retail,” Durban said.