Reliance Retail Looking To Raise $1.5 Bn From Existing Investors

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SUMMARY

Singapore's GIC, the Abu Dhabi Investment Authority (ADIA) and Saudi Arabia's PIF are looking to invest at least $500 Mn each in Reliance Retail

The talks with investors are part of an internal target to raise $3.5 Bn, which the retail giant wants to close by the end of September

Of the total corpus, Reliance Retail has already secured $1.25 Bn – $1 Bn from Qatar’s QIA and $250 Mn from KKR

Mukesh Ambani’s retail giant Reliance Retail is in talks with existing investors, including the sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia, to raise around $1.5 Bn in combined investment.

Singapore’s GIC, the Abu Dhabi Investment Authority (ADIA) and Saudi Arabia’s Public Investment Fund (PIF) are looking to invest at least $500 Mn each in Reliance Retail at a valuation of $100 Bn, Reuters reported citing sources.

The talks with investors are part of an internal target to raise $3.5 Bn, which the retail giant wants to close by September-end, Reuters reported. Of this, Reliance Retail has already secured $1.25 Bn – $1 Bn from Qatar’s QIA and $250 Mn from KKR.

Both firms invested in the company at a valuation of $100 Bn, placing it squarely among the biggest retail companies in the world. For comparison, Walmart’s market capitalisation stands at around $442 Bn, while Alibaba hovers at around $250 Bn.

“All the three investors have evaluated the company quite seriously,” one of the sources was quoted as saying in the report. However, the final investments or funding plans could still change.

The development comes as Reliance Retail is expanding its offerings with new launches and onboarding more micro, small and medium enterprises (MSMEs). Be it relaunching Shein in India or entering the beauty and personal care (BPC) space with Tira, the retail major has forayed into multiple segments. It has been mounting a major challenge in the ecommerce space, which has traditionally been a startup stronghold.

Reliance Retail has also acquired a number of startups, including Netmeds, Milkbasket, Dunzo, Ed-a-Mamma, Clovia, Fynd, Grab and Haptik, over the years. The Mukesh Ambani-led company claims to have an omnichannel network of more than 18,500 stores and digital commerce platforms across multiple segments.

It posted a net profit of INR 2,448 Cr in the first quarter of the financial year 2023-24 and operating revenue of INR 62,159 Cr. Digital and new commerce businesses accounted for 18% of its revenue during the quarter.