Abu Dhabi’s Mubadala invests in India’s Reliance Retail with a $843mn deal

Abu Dhabi-based sovereign investor, Mubadala Investment Company (Mubadala) has finalized its $843 million investment into Reliance Retail Ventures Limited (RRVL), a subsidiary of India’s multinational conglomerate, Reliance Industries Limited. 

Mubadala is set to gain a 1.4 percent share in Reliance Industries’ retail arm on a fully diluted basis. The firm has a history of an earlier investment with the Indian conglomerate when it had made an investment worth $1.2 billion in its highly lucrative digital subsidiary Jio Platforms.

RRVL-owned Reliance Retail is India’s fastest and most lucrative retail business serving close to 640 million footfalls across its 12,000 stores pan India. The firm intends to work as a catalyst to the Indian retail sector through an inclusive strategy that supports millions of farmers and micro, small and medium enterprises (SMEs).

Thorugh its New Commerce strategy, Reliance Retail has begun transformational digitalization of small and unorganized merchants in India with a commitment to expand the network numbering over 20 million businesses, giving them access to technology tools and efficient supply chain infrastructure that deliver superior value to their customers.

“We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Their vision is the inclusive transformation of India’s consumer economy through the power of digitization, creating opportunities and market access for millions of small businesses across the country, and we are committed to supporting the company’s continuing development.”

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am happy to welcome Mubadala as a valued investor in Reliance Retail Ventures. We value the partnership with a knowledge-rich organization like Mubadala and acknowledge their confidence in our mission to strengthen the core of India’s retail sector – the millions of small retailers, merchants and shopkeepers – through the power of technology. Mubadala’s investment and guidance will be an invaluable support in this journey.”