Business / Silver Lake's co-investors to invest additional ₹1,875 cr in Reliance Retail

Mumbai: US private equity firm Silver Lake's co-investors will be investing additional ₹1,875 crore into Reliance Retail Ventures (RRVL), the retail arm of Reliance Industries, the firm said in a regulatory filing late on Wednesday.

With a second investment announcement within a day and fourth in a month, Mukesh Ambani’s Reliance Retail Ventures Limited has raised ₹1,875 crore from Silver Lake co-investors. This investment takes Silver Lake’s total investment to ₹9,375 crore for a 2.13% stake.

Silver Lake had similarly invested in Jio in two rounds.

This brings the aggregate investment by Silver Lake and its co-investors in RRVL to ₹ 9,375 crore, which will translate into a 2.13% equity stake in RRVL on a fully diluted basis. This latest investment puts the valuation of Reliance Retail at ₹ 4.2 lakh crore.

Reliance Retail Limited, a subsidiary of RRVL, says it serves close to 640 million footfalls across its12,000 stores nationwide.

Silver Lake, whose portfolio includes stakes in Airbnb and Twitter Inc, has previously invested in Reliance's digital business.

On September 30 morning, Reliance had announced funding of ₹3,675 crore from General Atlantic.

“Silver Lake and its co-investors are valued partners on our journey to transform Indian Retail for the benefit of all Indians. Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian Retail and the capabilities of Reliance Retail,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries in a statement.

This is cheque number four for Reliance Retail after Silver Lake's ₹7,500-crore investment for a 1.75% stake, KKR's ₹5,550-crore investment for a 1.28% stake and General Atlantic's ₹3,675-crore investment for 0.84% stake.

Commenting on the aggregate investment brought by Silver Lake, Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “Silver Lake and its co-investors are valued partners on our journey to transform Indian Retail for the benefit of all Indians. We are pleased to have their confidence and support, as well as the benefit of their leadership in global technology investing and their valued network of relationships for the Retail revolution in India. Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian Retail and the capabilities of Reliance Retail."

Egon Durban, Co-CEO and Managing Partner of Silver Lake, said, “We are delighted to increase our exposure and bring more of our co-investors into this unmatched opportunity. The continued investment momentum over the last few weeks is proof of the compelling vision and business model of Reliance Retail – and underscores the tremendous potential of the transformative New Commerce initiative."

Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Latham & Watkins and Shardul Amarchand Mangaldas & Co acted as legal counsels for Silver Lake.