- The retail arm of
Reliance is set to raise $5.74 billion at a pre-money valuation of $57.4 billion. - And the first to bring money on the deck is
Silver Lake . - The private equity firm which invested $1.3 billion for a 2% stake in Jio, is now back in talks with Ambani for a $1 billion investment in the retail arm.
And the first to bring money on the deck is Silver Lake. The private equity firm, which invested $1.3 billion (₹10,202.55 crore) for a 2% stake in Jio, is now back in talks with Ambani for a $1 billion investment, added the source.
Reliance has not responded to Business Insider’s queries yet.
Ambani in his speech during Reliance’s Annual General Meet had mentioned that talks are on with potential investors for investments in retail. And according to the source, only existing Jio investors are going to come on board as Reliance Retail investors to “further deepen the relationship”.
Reliance Retail had recently acquired Kishore Biyani’s Future Retail for ₹25,000 crore ($3.4 billion). Reliance Retail will now own all of the Future Enterprises’ stores by way of a ‘slump sale’ – Big Bazaar, fbb, Foodhall, Easyday, Nilgiris, Central, and Brand Factory. The deal will also see Reliance take over Future’s logistics and warehouse.
And Ambani’s plans to bring investors on board is also to fuel the expansion plans he has for the retail venture. Late last year, Ambani’s e-commerce venture JioMart had begun operations, and during the lockdown, it scaled its presence to 200 cities and at its peak, clocked 400,000 orders in a day.
According to a Goldman Sachs report, Ambani’s e-commerce bet JioMart is poised to sell half of all online grocery in India, which is expected to see 5 million orders every day by 2024.
SEE ALSO:
Vodafone Idea may need up to ₹18,800 crore in next two years and tariff hikes to survive, says a new report
Ambani vs Damani — India’s $635 billion retail ring will see the country’s two richest men battle with different strategies