Reliance Retail Ventures Raises $598 Million from Abu Dhabi Investment Authority
Reliance Retail Ventures, the retail unit of Reliance Industries owned by billionaire Mukesh Ambani, has secured a significant investment of 49.67 billion rupees ($598 million) from the Abu Dhabi Investment Authority (ADIA). This latest investment highlights the growing confidence in India’s largest retailer, as it prepares for a potential stock market listing.
ADIA’s investment, at a valuation of $100.8 billion, will grant them a 0.59% stake in Reliance Retail Ventures. With over 18,000 stores, the company competes with global giants like Amazon and Walmart’s Flipkart. This investment from ADIA follows recent investments from private equity firm KKR & Co and Qatar Investment Authority.
Hamad Shahwan Aldhaheri, the executive director of the private equities department at ADIA, expressed confidence in Reliance Retail’s growth and adaptability in a rapidly evolving market. The investment aligns with Reliance Retail’s internal target to raise $3.5 billion.
Reliance Retail Ventures has been attracting interest from various global strategic and financial investors, as highlighted by Mukesh Ambani in August. The company has previously received investments from sovereign wealth funds such as Singapore’s GIC and Saudi Arabia’s Public Investment Fund.
Morgan Stanley acted as the financial adviser for Reliance Retail Ventures in the ADIA deal. The company is also reportedly in talks with other existing investors for additional investments totaling around $1.5 billion.
The investment from ADIA further strengthens Reliance Retail Ventures’ position in the retail market and sets the stage for its future growth and expansion plans. With a strong track record and the backing of prominent investors, the company is well-positioned to navigate India’s evolving retail landscape.