Reliance Industries Announces Investments from GIC and TPG into Reliance Retail Ventures

Reliance Industries and Reliance Retail announced that global investment firm TPG will invest Rs 1,837.5 crore and GIC will invest Rs 5,512.5 crore into Reliance Retail Ventures (RRVL). While the GIC investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore, and translates into a 1.22% equity stake in RRVL, TPG’s investment will translate into a 0.41% equity stake in RRVL on a fully diluted basis.

This marks the second investment by TPG in a subsidiary of Reliance Industries, following a Rs 4,546.8 crore investment in Jio Platforms announced earlier this year. TPG is a leading global alternative asset firm founded in 1992 with more than $83 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity.

Jim Coulter, Co-CEO, TPG, said: “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. We are excited to join with them as they seek to create a more inclusive retail industry that allows Kiranas and Indian consumers to benefit from the connectivity, efficiency, and accessibility of the Reliance Retail omnichannel platform.”

Commenting on the TPG investment, Mukesh Ambani, chairman and managing director of Reliance Industries, said: “I am pleased to welcome TPG as valued investors in Reliance Retail Ventures mission of growing and transforming the Indian Retail ecosystem for the benefit of all Indians. TPG has a proven track record of being a valuable partner to global technology businesses and industry leaders and we look forward to their guidance and support in our journey.”

GIC is a global long-term investor with over US$100 billion in assets in over 40 countries worldwide. Lim Chow Kiat, chief executive officer, GIC, said: “GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India’s retail market. 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.”

Commenting on the GIC investment, Mukesh Ambani, said: “It gives me great pleasure to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape. GIC’s global network and track record of long-term partnerships will be invaluable to the transformation story of Indian Retail. This investment is a strong endorsement of our strategy and India’s potential.”