Reliance Retail Bags $1 Bn From GIC, TPG Capital

SUMMARY

GIC has invested INR 5,512.5 Cr for 1.22% stake, while TPG has invested INR 1,837.5 Cr for 0.41% stake

This week, it also raised funding from General Atlantic, Silver Lake co-investors and Mubadala

The company has been valued at a pre-money equity value of INR 4.285 Lakh Cr for all these deals

Reliance Industries-owned retail unit Reliance Retail, on Saturday (October 3), announced that it has raised nearly INR 7,349K Cr (nearly $1 Bn) from Global investors GIC and TGP to accelerate the growth of its digital retail empire.

GIC has invested INR 5,512.5 Cr into Reliance Retail for 1.22% stake at a pre-money equity value of INR 4.285 Lakh Cr. Meanwhile, TPG has invested INR 1,837.5 Cr for 0.41% stake at the same valuation. This is TPG’s second investment in Reliance Industries, prior to this it had invested INR 4.546.8 Cr in Jio Platform.

Incubated in a family office, TPG Capital was founded in 1992 by James Coulter, David Bonderman and William S. Price III as Texas Pacific Group. It has more than $70 Bn under management with nearly 145 startups in its portfolio including Uber, Airbnb and SurveyMonkey. In India, it has invested in Livspace, Nykaa, Lenskart, BookMyShow, and Dream11.

GIC was established in 1981 to manage Singapore’s forign reserves. GIC has made 141 investments in over 40 countries. It has invested in O2O deals marketplace Little, ChargePoint, General Fusion and more.

Commenting on the deal, TPG’s co-CEO Jim Coulter said, “Regulatory changes, consumer demographics and technological disruption are creating seismic shifts across the entire retail value chain in India. In the midst of this transformation, Reliance Industries has utilised technology and scale to position Reliance Retail as an incredibly strong, well-organized, and innovative leader.”

Meanwhile, Reliance Industries’ chairperson and MD, Mukesh Ambani said that the investment will help Reliance Retail Venture to grow and transform Indian retail ecosystem for the benefits of all Indians.

Earlier this week, the company had raised funding from General Atlantic, Silver Lake co-investors and Mubadala. Silver Lake co-investors invested INR 1,875 Cr increasing its stake to 2.13% in the company. The private equity firm had flagged off Reliance Retails’ funding spree with INR 7,500 Cr for a 1.75% back in September.

Abu Dhabi’s sovereign fund Mubadala Investment Company had invested INR 6,247 Cr for 1.4% stake. Meanwhile, General Atlantic has committed to invest INR 3,675 Cr in Reliance Retail in exchange for 0.84% equity stake on a fully diluted basis. The company has been valued at a pre-money equity value of INR 4.285 Lakh Cr for all these deals.