Qatar's sovereign wealth fund, Qatar Investment Authority (QIA), announced on Wednesday that an investment of ₹ 8,278 crore (approx. $1bln) into Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited . QIA is making this investment for a minority equity stake of 0.99% in RRVL on a fully-diluted basis.
With this fresh investment from QIA, RRVL values at a pre-money equity value of $100 billion or Rs 8.27 lakh Crore. QIA’s investment comes as the Qatari fund seeks to further invest in India’s fast-growing economy.
QIA said that investment in Reliance Retail is demonstration of its diversified approach to global investment and confidence in India’s fast-growing economy. India’s growth trajectory and national focus on innovation aligns with QIA’s investment approach to support companies in India with high-growth potential.
Recent investments from QIA in India have included companies in the technology, media and telecoms sector, retail sector, and in green energy investments.
The previous fundraise round by RRVL in 2020 from various global investors of an aggregate amount of ₹ 47,265 crore was done at a pre-money equity value of ₹ 4.21 lakh crore.
In November 2020, Saudi Arabia’s Public Investment Fund (PIF) invested ₹9,555 crore for a little over 2% in RRVL.
To date, Reliance Retail has raised about $7.4 billion in total 7 rounds from Qatar and Saudi's sovereign wealth funds, Abu Dhabi Investment Authority, Singapore's GIC, TPG, General Atlantic, Mubadala and Silver Lake among others.
Ms Isha Mukesh Ambani, Director, Reliance Retail Ventures Limited, said, “We are delighted to welcome QIA as an investor in the Reliance Retail Ventures Limited. We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance’s retail business model, strategy and execution capabilities."
Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, “QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market. We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India.”
RRVL, through its subsidiaries and affiliates, operates an integrated omni-channel network of over 18,500 stores and digital commerce platforms across Grocery, Consumer Electronics, Fashion & Lifestyle and Pharma consumption baskets and has partnered with over 3 million merchants through its New Commerce initiative. Reliance Retail Limited, a subsidiary of RRVL, is the only Indian retailer in the global Top 100 and amongst the fastest growing retailers globally as per Deloitte's Global Powers of Retailing 2023.
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