The investment of US$755 million, confirmed on Wednesday, followed KRR Asia’s May investment in Jio Platforms, which RIL chairman and MD Mukesh Ambani, credited with supporting the creation of a “premier digital society” in India. That was valued at US$1.5 billion.
The latest investment will be channelled into Reliance’s online retail venture, Reliance Retail Ventures Limited (RRVL). It is intended to provide digital and logistical infrastructure for 20 million merchants across India, including Kiranas (small retail stores), SMEs, micro-traders, farmers and others, to trade online.
Ambani 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.”
Reliance Retail Limited, a subsidiary of RRVL, sees footfall close to 640 million across its network of approximately 12,000 stores nationwide.
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.”
The venture is the latest in a series of communications and digital investments for KKR, which has had a busy year to date on all fronts.
In addition to the $1.5 billion it invested in Jio Platforms, KKR made a binding offer for a minority share in TIM, backed by its board on 30 August. In June it was part of a consortium that successfully offered $3.3 billion for Spain’s Masmovil.
Further, KKR ploughed $1 billion into data centre business Global Technical Realty (GTR), founded by Franek Sodzawiczny. Derived from KKR’s third global infrastructure fund this transaction “may be supplemented with additional commitments over time”. Last year KKR debuted in the UK with the purchase of a majority stake in full-fibre provider Hyperoptic,
Ambani’s vision is to create an online marketplace for 20 million SMEs and small traders who are active across India. RRVL said it will work 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”.
Underlining the scale of Ambani’s ambition, Amazon has been offered a $20 billion stake in the business, with sources claiming that up to $40 billion of the company could be sold to investors.
Meanwhile, Jio Platforms has introduced India’s first in-flight services for overseas travellers. The firm has partnered with 22 international airlines to introduce voice, data and SMS services.
