RRVL is a subsidiary of Reliance Industries.
“This investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. TPG’s investment will translate into a 0.41% equity stake in RRVL on a fully diluted basis,” said a statement issued by Reliance Retail.
“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,” it added.
Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide, the company said.
Reliance Retail’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and MSMEs.
Reliance Retails also aims to work 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.
Reliance Retail, through its new commerce strategy, has started a transformational digitalization of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants.
“This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers,” the statement said.
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.
Over TPG’s nearly 30-year history, the firm has built an ecosystem made up of hundreds of portfolio companies and a value-added network of professionals, executives, and advisors around the world.
By offering institutional support and global resources, TPG enables these companies to reach their full potential and unlock greater possibilities.
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,” he added.
Isha Ambani, director of Reliance Retail, said, “We are delighted to welcome TPG to the Reliance Retail family in our journey of revolutionizing the Indian Retail landscape and improving the economic prospects of millions of merchants and enhancing consumer experience.”
Puneet Bhatia, co-managing partner and country head, India of TPG Capital Asia, said, “There is a significant opportunity to transform the Indian retail ecosystem for the better.”