Leading global investment company TPG said it will invest Rs 1,837.5 crore in RIL's Reliance Retail Ventures, joining a flood of global investors buying stake in billionaire Mukesh Ambani's company.

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In a statement issued early on October 3, RIL said this investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. TPG's investment will translate into a 0.41 percent equity stake in RRVL on a fully diluted basis.

This is the seventh investment in RRVL and TPG's second in a subsidiary of Reliance Industries, following a Rs 4,546.8 crore investment in Jio Platforms announced earlier this year.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries said, "I am pleased to welcome TPG as valued investors in Reliance Retail Ventures mission of growing and transforming the Indian Retail ecosystem for the benefit of all Indians. TPG has a proven track record of being a valuable partner to global technology businesses and industry leaders and we look forward to their guidance and support in our journey."

Jim Coulter, Co-CEO of TPG 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 utilized technology and scale to position Reliance Retail as an incredibly strong, well-organized, and innovative leader. We are excited to join with them as they seek to create a more inclusive retail industry that allows Kiranas and Indian consumers to benefit from the connectivity, efficiency, and accessibility of the Reliance Retail omnichannel platform.”

Isha Ambani, Director of Reliance Retail said, “We are delighted to welcome TPG to the Reliance Retail family in our journey of revolutionizing the Indian Retail landscape and improving the economic prospects of millions of merchants and enhancing consumer experience. TPG’s rich experience will be invaluable to the Reliance Retail mission.”

Puneet Bhatia, Co-Managing Partner and Country Head, India of TPG Capital Asia, said, “There is a significant opportunity to transform the Indian retail ecosystem for the better. Through their New Commerce initiative, Reliance Retail continues to lead the industry by creating a retail platform that meets the demands of a new generation of Indian consumers. We are excited to work with Reliance Industries as they reimagine the retail experience across the value chain.”

First Published:Oct 3, 2020 1:23 AM IST