This is the third strategic investment in the retail unit of Reliance Industries Ltd (RIL) within a month.
With the investment from General Atlantic, Reliance has now raised around $2.3 billion for its retail arm
India's Reliance Industries said on Wednesday private equity firm General Atlantic will invest Rs. 3,675 crores for a 0.84 percent stake in its retail arm, Reliance Retail, sending shares of the country's most valuable company up as much as 1 percent.
The deal underscores growing investor interest in the Mukesh Ambani-led company's expansion plans as it diversifies from its mainstay oil-and-gas business. Reliance is being seen as a formidable rival to Amazon and Walmart's Flipkart as they battle for market dominance in India.
Wednesday's investment gives Reliance Retail a pre-money valuation of Rs. 4,28,500 crores, the company said.
Reliance, which in May launched an online grocery service, also operates around 12,000 brick and mortar stores.
Chairman Mukesh Ambani said Reliance would leverage General Atlantic's "extensive expertise at the intersection of technology and consumer businesses" to expand its new commerce venture, tying neighbourhood stores for online deliveries of groceries, apparel and electronics.
With the latest investment from General Atlantic, which has also invested in Airbnb, Slack and Uber, Reliance has now raised around $2.3 billion (roughly Rs. 16,947 crores) for its retail arm.
General Atlantic is also an investor in Reliance's digital business Jio platforms, and sources told Reuters this week Abu Dhabi state fund Mubadala is in advanced talks to invest up to $1 billion (roughly Rs. 7,373 crores) in the company's retail unit.
In India, competition for market share has prompted e-commerce players to look for new partnerships. Financial daily Mint reported on Tuesday US retailer Walmart was in talks to invest up to $25 billion (roughly Rs. 1,84,338 crores) in Tata Group's planned "super-app", which will tie in all of the conglomerate's consumer businesses.
© Thomson Reuters 2020
Will Xbox Series S, PS5 Digital Edition fail in India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.
Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.