KKR invests another $250 million in Reliance Retail

KKR invests another $250 million in Reliance Retail

Reliance Retail, India’s largest retailer owned by billionaire Mukesh Ambani, has received another $250 million investment from KKR, a global private equity firm. This boosts KKR’s stake in the company to 1.42% from 1.17%, valuing Reliance Retail at $100 billion.

The deal is part of Reliance Retail’s ongoing fundraising efforts, which have attracted several foreign investors since last year.

According to a report, the company operates more than 18,000 stores across various segments, including fashion, grocery and electronics. It also has partnerships with international brands such as Jimmy Choo, Marks & Spencer and Pret A Manger, and competes with online giants like Amazon and Flipkart.

Reliance Retail said in a statement on Monday that KKR’s additional investment came mainly from its Asian Fund IV, and was subject to regulatory approvals. Morgan Stanley was the financial adviser to Reliance Retail.

The company raised $5.71 billion in 2020 by selling a 10.09% stake to investors such as KKR, the Saudi Public Investment Fund, General Atlantic and the United Arab Emirates’ Mubadala. Ambani said recently that the company’s valuation had almost doubled in less than three years, from $52 billion in 2020 to $100 billion in 2023.

Reuters reported earlier this month that Reliance Retail was in advanced talks with global investors to raise around $2.5 billion by the end of September, ahead of a possible stock market listing. Ambani had announced in 2019 that he planned to list the retail business in five years.

The company secured $1 billion from Qatar Investment Authority last month at a $100 billion valuation, as part of its $3.5 billion fundraising target.

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