QIA to invest ₹8,278 cr in India's Reliance Retail Ventures

QIA’s investment will translate into a minority equity stake of 0.99 per cent in RRVL on a fully-diluted basis. The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of ₹47,265 crore was done at a pre-money equity value of ₹4.21 lakh crore, RRVL and QIA said in a joint press release.

“We are delighted to welcome QIA as an investor in RRVL. We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop RRVL into a world-class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards the Indian economy and Reliance’s retail business model, strategy, and execution capabilities,” said Isha Mukesh Ambani, director, RRVL.

“QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market. We are looking forward to RRVL, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India,” said Mansoor Ebrahim Al-Mahmoud, CEO, QIA.

RRVL, through its subsidiaries and associates, operates India’s largest, fastest growing, and most profitable retail business serving 267 million loyalty customers with an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharma consumption baskets.

RRVL’s vision is to galvanise the Indian retail sector through an inclusive strategy serving millions of customers, empowering micro, small, and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians. RRVL, through its New Commerce business, has digitised more than 3 million small and unorganised merchants. This will enable these merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.

Morgan Stanley acted as financial advisor to RRVL and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Goldman Sachs, acting as financial advisor to RIL, advised on the process and transaction structuring. AZB and Cleary Gottlieb acted as legal counsel to QIA.

Fibre2Fashion News Desk (NB)