Reliance Retail scores fresh capital from Singapore wealth fund, TPG

Reliance Retail Ventures Limited (RRVL), the retail subsidiary of Reliance Industries Limited (RIL), has announced a fresh round of investment from the sovereign wealth fund of Singapore government, GIC and San Francisco based private equity firm, TPG.

GIC will invest $753.6 million ( about Rs 5512.5 crore) in RRVL for a 1.22% stake in the company while TPG will pick 0.41% equity for an investment of $256.14 million (Rs 1837.5 crore). The investment values RRVL at $58.5 billion (Rs 4.285 lakh crore) pre-money. 

Announced last week, the infusion comes shortly after Abu Dhabi based sovereign firm Mubadala Investment Company said it would invest $852.5 million while existing investor Silver Lake put in an additional $256 million in the company. 

“We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders,” Lim Chow Kiat, CEO of GIC said in a statement. 

RRVL  houses RIL’s retail companies as well as its omni-channel business, Jio Mart as part of its ‘new commerce’ strategy. It digitises small unorganised merchants to use technology tools for supply chain infrastructure as part of the business. In August, the company also acquired Kishore Biyani-led Future Group for $3.38 billion to strengthen its retail presence. The company currently operates close to 12000 retail stores. 

“Regulatory changes, consumer demographics and technological disruption are creating seismic shifts across the entire retail value chain in India. In the midst of this transformation, Reliance Industries has utilized technology and scale to position Reliance Retail as an incredibly strong, well-organized, and innovative leader,” said Jim Coulter, co-CEO of TPG in a statement. 

RRVL recorded a consolidated turnover of $21.7 billion and net profit of $726.4 million for the financial year ending March 31, 2020. 

After RIL’s Jio Platforms, RRVL has been on a fundraising spree. Jio Platforms has raised $21 billion across multiple rounds of equity investments thus far.