Reliance Retail, the retail powerhouse led by Mukesh Ambani, is engaged in discussions with its current investors, which notably include sovereign wealth funds from Singapore, Abu Dhabi, and Saudi Arabia, with the aim of securing approximately $1.5 billion in total investment.
According to sources cited by Reuters, GIC of Singapore, the Abu Dhabi Investment Authority (ADIA), and Saudi Arabia’s Public Investment Fund (PIF) are considering individual investments of at least $500 million each in Reliance Retail, valuing the company at $100 billion.
As per a Reuters report, Reliance Retail aims to reach an internal fundraising goal of $3.5 billion by the end of September. Thus far, the company has successfully secured $1.25 billion, with $1 billion coming from Qatar’s QIA and an additional $250 million from KKR, as part of these ongoing discussions with investors.
Also Read: KKR to invest INR 2,069 Crores in Reliance Retail Ventures, valuing company at INR 8.36 Lakh Crores
These two entities invested in the company when it was valued at $100 billion, positioning it firmly among the world’s largest retail corporations. To put this in perspective, Walmart boasts a market capitalization of approximately $442 billion, while Alibaba’s valuation hovers around $250 billion.
“All the three investors have evaluated the company quite seriously,” one of the sources was quoted as saying in the report. However, the final investments or funding plans could still change.
This development coincides with Reliance Retail’s strategy of broadening its product range through new introductions and embracing a greater number of micro, small, and medium enterprises (MSMEs). Whether it’s the revival of Shein in India or the venture into the beauty and personal care (BPC) sector with Tira, the retail giant has diversified its operations into various segments. This strategic expansion has posed a significant challenge to the e-commerce sector, which has traditionally been dominated by startups.
Over the years, Reliance Retail has expanded its portfolio through the acquisition of several startups, such as Netmeds, Milkbasket, Dunzo, Ed-a-Mamma, Clovia, Fynd, Grab, and Haptik. Under the leadership of Mukesh Ambani, the company asserts an omnichannel presence, boasting a network of over 18,500 stores and digital commerce platforms spanning various sectors.
In the initial quarter of the fiscal year 2023-24, Reliance Retail recorded a net profit of INR 2,448 crore and generated INR 62,159 crore in operating revenue. Notably, digital and emerging commerce ventures contributed 18% of the total revenue for the quarter.