Business News

Reliance Retail in Talks with Gulf and Singapore Funds for $1.5 Billion Investment

The Entrepreneur Bytes Team September 13, 2023 38

Reliance Retail, led by Mukesh Ambani, is in discussions with sovereign wealth funds from Singapore, Abu Dhabi, and Saudi Arabia for a potential injection of $1.5 billion, as part of its goal to raise $3.5 billion by the end of September.

Reliance Retail in Talks with Gulf and Singapore Funds for $1.5 Billion Investment

Reliance Retail, India’s largest retail chain, is actively engaged in discussions with prominent investors, including sovereign wealth funds from Singapore, Abu Dhabi, and Saudi Arabia, with the aim of securing combined new investments totaling approximately $1.5 billion. This development comes as Reliance Retail pushes forward with its internal target of raising a substantial $3.5 billion in funds by the end of September, according to information shared by three sources familiar with the matter.

At the helm of Reliance Retail is Mukesh Ambani, Asia’s wealthiest individual, who is leading the company’s efforts to attract substantial investments to further its growth and expansion initiatives. The ongoing discussions with investors build on the momentum generated by recent significant investments in the company. Just last month, the Qatar Investment Authority (QIA) announced a substantial $1 billion investment, while this week, KKR & Co pledged $250 million towards Reliance Retail.

Among the potential investors, Singapore’s sovereign wealth fund GIC, the Abu Dhabi Investment Authority (ADIA), and Saudi Arabia’s Public Investment Fund (PIF) are reportedly considering injecting at least $500 million each into Reliance Retail. These investments are envisioned to value the retail giant at an impressive $100 billion, according to one of the sources familiar with the discussions.

Both GIC and ADIA have declined to comment on the matter, while PIF has not yet responded to Reuters’ requests for comment. As for Reliance Retail, the company maintained its policy of not commenting on media speculation and rumors.

A second source involved in the negotiations revealed that the actual investments from the three investors may vary, with some potentially contributing less than the suggested $500 million. Furthermore, Reliance Retail is actively exploring discussions with at least one or two additional investors as part of its ongoing fundraising efforts. The sources emphasized that all three of the major investors have undertaken a thorough evaluation of Reliance Retail as a promising investment opportunity.

It’s worth noting that the final investment figures and funding plans remain subject to potential adjustments as discussions progress. However, these strategic investment efforts underscore Reliance Retail’s commitment to securing the necessary capital to support its ambitious growth plans and solidify its position as a dominant force in India’s retail sector.

As Reliance Retail continues to attract substantial investments from both domestic and international sources, its expansion initiatives and business strategies are set to reshape the landscape of India’s retail industry in the coming years.

Sources By Agencies