Reliance Industries has been very active in business in recent times. While many companies have struggled to survive in the COVID Pandemic, Reliance instead has raised money from renowned investors by selling its stakes. Especially, the telecom arm of Reliance, Jio has made ties with around 12 renowned companies within a few months.
Now reports have come up that, US private equity firm, Silver Lake Partners will buy a 1.75% stake in its retail business for Rs 7,500 crores. Reliance recently inaugurated “Jio Mart” in few cities using its already settled supply chain like Reliance Fresh, Reliance Digital, and other Jio stores which can act as warehouse as well supply chains for its new e-commerce venture with “Jio Mart”. It has been giving tough competition to Amazon and Flipkart in the cities where it has been launched.
Silver Lake's investment has valued Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore, as per the company’s regulatory filing. In a rapid expansion into India's largely unorganized retail sector, Reliance in August bought the retail and wholesale business and the logistics and warehousing business of Future Group for $3.38 billion.
Silver Lake’s portfolio of companies includes Airbnb and Twitter Inc. It has also invested in Reliance's digital business before, as part of a fund-raising spree by Reliance. It will be interesting to see if Reliance can create the same impact in the Indian unorganized retail market as it did with its telecom arm Jio.
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