Silver Lake picks up 1.75 pc stake in Reliance Retail for Rs 7,500 Cr

Private equity company Silver Lake Partners are about to invest Rs 7,500 crore in Reliance Retail for a 1.75 percent stake, the Mukesh Ambani-led company declared recently.

Earlier this year, Silver Lake had invested an amount of $1.35 billion in Reliance Jio. The PE giant’s retail buy comes weeks after Reliance bought a stake in Future Group, led by Kishore Biyani, via its retail unit.

The latest investment values Reliance Retail at $57 billion, or Rs 4.21 lakh crore.

Egon Durban, CEO and Managing Partner of Silver Lake, stated that they are pleased to deepen their relationship with Reliance.

The success of JioMart in such a short time span, especially while India, besides the rest of the world, battles the COVID-19 pandemic, is truly unknown, and the most exciting growth phase has just commenced.

He also said that Reliance’s New Commerce strategy could become the disruptor of this decade.

Reliance Retail, which operates and functions nearly 12,000 stores across India, has been fleshing out its retail business to compete with the likes of Amazon and Flipkart.

Moreover the oil-to-telecoms behemoth has been trying to digitise the dismantled merchants sector to create more efficient supply chains that will help and support it better rival ecommerce giants.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, stated that he is delighted to extend their relationship with Silver Lake to their transformational efforts of building an inclusive partnership with millions of small merchants while also providing value to Indian customers across the country in the Indian retail sector.

Furthermore he also said that he believes that technology will be the focal point to bring the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. 

Reliance’s shares were nearly higher – around 0.4 percent – at Rs 2,110.05 in early trading on lately.

     – Authored by Farheen Malik 

       Content Head, StartupMonk

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