Mumbai: Private Equity fund Silver Lake Partners to make investment of Rs 7,500 crore in the Reliance Industries Ltd (RIL) in exchange of 1.75 percent stakes.
Earlier the Silve lake has invested in Jio Platforms. The investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore.
On the transaction with Silver Lake, Mukesh Ambani, Chairman, Reliance Industries said, ‘I am delighted to extend our relationship with Silver Lake to our transformational efforts of building an inclusive partnership with millions of small merchants while providing value to Indian consumers across the country in the Indian retail sector. We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian Retail’.
Egon Durban, Co-CEO and Managing Partner of Silver Lake, said, “We are pleased to deepen our relationship with Reliance with this investment. Mukesh Ambani and his team at Reliance have created an outstanding world leader in retail and technology through their courageous vision, commitment to societal benefits, innovation excellence and relentless execution. The success of JioMart in such a short time span, especially while India, along with the rest of the world, battles the COVID-19 pandemic, is truly unprecedented, and the most exciting growth phase has just begun. Reliance’s New Commerce strategy could become the disruptor of this decade. We are thrilled to have been invited to partner with Reliance in their mission for Indian Retail.”
Silver Lake has a terrific track record of investing in some of the largest and successful tech companies globally such as Twitter, Airbnb, Alibaba, Dell Technologies, ANT Financials, Twitter, Alphabet’s Waymo and Verily, among others.
RIL, an oil-to-telecom conglomerate, is expanding its retail business and creating big name globally. Reliance has various company such as Reliance arms, India’s biggest brick-and-mortar retail business and its footprint spans across 11,806 retail stores in over 7,000 towns with 28.7 million sq ft of retail space. It launched JioMart, a online grocery shop in May and now sells a raft of items such as electronics, jewellery, apparel and vegetables, among others.