Mubadala to invest Dhs3.1b in Reliance Retail Ventures

Mubadala Investment Company (Mubadala), the Abu Dhabi-based sovereign investor, on Thursday announced it will invest 62.48 billion rupees (Dhs3.1 billion) into Reliance Retail Ventures Limited (RRVL), a subsidiary of India’s Reliance Industries Limited (Reliance Industries). The investment values Reliance Retail at a pre-money equity value of 4.29 trillion rupees. Mubadala’s investment will translate into a 1.40% equity stake in RRVL on a fully diluted basis.

This marks the second significant investment by Mubadala in a Reliance Industries subsidiary after the $1.2 billion investment in Jio Platforms announced earlier this year.

Reliance Retail Limited, a subsidiary of RRVL, operates India’s 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 that empowers millions of farmers and micro, small and medium enterprises. Working closely with global and domestic companies as a preferred partner, it aims 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 unorganized merchants and is committed to expanding the network numbering over 20 million businesses, giving them access to technology tools and efficient supply chain infrastructure that deliver superior value to their customers.

Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: “We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Their vision is the inclusive transformation of India’s consumer economy through the power of digitization, creating opportunities and market access for millions of small businesses across the country, and we are committed to supporting the company’s continuing development.”

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “I am happy to welcome Mubadala as a valued investor in Reliance Retail Ventures. We value the partnership with a knowledge-rich organization like Mubadala and acknowledge their confidence in our mission to strengthen the core of India’s retail sector - the millions of small retailers, merchants and shopkeepers - through the power of technology. Mubadala’s investment and guidance will be an invaluable support in this journey.”

The transaction is subject to regulatory and other customary approvals.

Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi.

Mubadala’s $232 billion (Dhs 853 billion) portfolio spans six continents with interests in multiple sectors and asset classes. We leverage our deep sectoral expertise and long-standing partnerships to actively source deals. In the UAE, we are driving sustainable growth by optimizing scale and efficiency, supporting the continued diversification and global integration of the local economy while growing our shareholder value.

Mubadala Investment Company, one of the world’s largest global investors and Silver Lake, the global leader in technology investing, announced recently that they they are building on their existing relationship by establishing a long-term investment strategy led by Silver Lake and supported by a $2 billion investment from Mubadala.

The new strategy has a unique 25-year deployment lifecycle and is designed to invest flexibly across investment structures, geographies and industries, as well as fluidly throughout capital structures and across the spectrum of early to later stage opportunities, consistent with Silver Lake’s clearly defined mission to build and grow great companies for the benefit of all stakeholders.

In addition to forming the new strategy, Mubadala has also acquired a minority equity interest in Silver Lake. The two firms have already worked collaboratively across investments such as Endeavor, Waymo (Alphabet’s driverless technology company) and India-based Jio Platforms.

“We are extremely pleased to deepen our partnership with the visionary team at Mubadala, firmly rooted in our orientation as a long-term investor in the most iconic and enduring businesses,” said Silver Lake Co-CEOs Egon Durban and Greg Mondre, on behalf of the firm’s Managing Partners.

Agencies