Silver Lake to invest $255.13 Mn more in Reliance Retail

By Rahul Vaimal, Associate Editor
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The US private equity firm Silver Lake’s partners will invest an additional $255.13 million in Reliance Retail Ventures Ltd. (RRVL), a wing of Reliance Industries Ltd., as the Indian firm continues to raise funds.

With this, the US private equity firm and it’s co-investors have made a consolidated investment of $127.7 billion in the Indian conglomerate’s retail arm which will translate into shares worth 2.13 percent. 

Silver Lake’s portfolio is rich with its investments in home rental company Airbnb and social media firm Twitter and they are already shareholders in the digital arm of Reliance industries – Jio. 

This is the fourth investment for RRVL after Silver Lake’s investment of $1 billion for about 1.75 percent share, KKR & Co. have promised to invest $775.09 million for 1.28 percent stake while the General Atlantic have agreed to take up 0.84 percent share worth $498.31 million. 

Egon Durban
Egon Durban,
Co-CEO & Managing Partner
Silver Lake

“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.”

The current deal marks a valuation of $656.88 trillion for Reliance Retail. Morgan Stanley, the American multinational investment bank and financial services company, acted as the financial advisor for the Indian conglomerate.

RRVL has a total of 11,784 stores across consumer electronics, grocery and general merchandise and fashion and lifestyle in India and its recent acquisition of Future Group’s retail and logistics business will add 1,736 new hypermarkets, discount department stores and grocery stores to the chain.