KKR to Invest ₹ 5,550 Crore in Reliance Retail Ventures

KKR’S SECOND INVESTMENT WITH RELIANCE INDUSTRIES FUELS GROWTH OF INDIA’S FASTEST GROWING RETAIL BUSINESS AND ITS TRANSFORMATIONAL NEW COMMERCE MODEL

Reliance Industries Limited (“Reliance Industries”) and Reliance
Retail Ventures Limited (“RRVL”) announced today that global investment firm KKR will invest
₹ 5,550 crore into RRVL, a subsidiary of Reliance Industries. This investment values Reliance
Retail at a pre-money equity value of ₹ 4.21 lakh crore. KKR’s investment will translate into a
1.28% equity stake in RRVL on a fully diluted basis.
This marks the second investment by KKR in a subsidiary of Reliance Industries, following a
₹ 11,367 crore investment in Jio Platforms announced earlier this year.
Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest growing and most
profitable retail business serving close to 640 million footfalls across its ~12,000 stores
nationwide. Reliance Retail’s vision is to galvanize the Indian retail sector through an inclusive
strategy serving millions of customers by empowering millions of farmers and micro, small and
medium enterprises (MSMEs) and working closely with global and domestic companies as a
preferred partner, to deliver immense benefits to Indian society, while protecting and generating
employment for millions of Indians. Reliance Retail, through its New Commerce strategy, has
started a transformational digitalization of small and unorganised merchants and is committed to
expanding the network to over 20 million of these merchants. This will enable the merchants to
use technology tools and an efficient supply chain infrastructure to deliver a superior value
proposition to their own customers.
Founded in 1976, KKR has $222 billion in assets under management as of June 30, 2020 and a
long history of building leading global enterprises, including many companies at the forefront of
technology and digital transformation including in areas of consumer retail and eCommerce, such
as investments in Epic Games, OutSystems, Internet Brands, Go-jek and Voyager Innovations.
KKR established its first of eight Asia offices in 2005 and the firm currently has approximately
$5.1 billion in private equity investments across more than 15 Indian companies, including Jio
Platforms, JB Chemicals, Max Healthcare, Eurokids International and Ramky Enviro Engineers.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am
pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward
march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians. KKR
has a proven track record of being a valuable partner to industry-leading franchises and has been
committed to India for many years. We look forward to working with KKR’s global platform,
industry knowledge and operational expertise across our digital services and retail businesses.”

Henry Kravis, Co-Founder and Co-CEO of KKR, said, “We are pleased to deepen our
relationship with Reliance Industries through this investment in Reliance Retail Ventures, which
is empowering merchants of all sizes and fundamentally changing the retail experience for Indian
consumers. Reliance Retail’s new commerce platform is filling an important need for both
consumers and small businesses as more Indian consumers move to shopping online and the
company offers tools for Kiranas to be a critical part of the value chain. We are thrilled to support
Reliance Retail in its mission to become India’s leading omnichannel retailer and ultimately to
build a more inclusive Indian retail economy.”
KKR is making its investment from its Asia private equity funds. The transaction is subject to
regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas
and Davis Polk & Wardwell acted as legal counsels. Deloitte Touche Tohmatsu India LLP acted
as financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher &
Bartlett LLP acted as legal counsel to KKR.