KKR to follow Silver Lake? PE firm may invest $1.5 billion in Reliance's retail biz

Private equity firm KKR and Co could be the next big name to invest in Mukesh Ambani's retail business. It is likely to follow Silver Lake that invested $1 billion or Rs 7,500 crore in the unit. KKR is in discussions for a stake in Reliance Retail Ventures Ltd for as much as $1.5 billion. The announcement could come before the end of the month.

Negotiations are going on and could be delayed, as mentioned in a report in Bloomberg. KKR and Reliance have not commented on the development.

Reliance Retail is valued at Rs 4.21 lakh crore at a pre-money equity value after Silver Lake's investment of Rs 7,500 crore. This investment comes after RIL acquired Kishore Biyani's Future Group for Rs 24,713 crore.

Earlier this year, Silver Lake invested $1.35 billion for a stake in Mukesh Ambani's Jio Platforms, while KKR invested $1.5 billion. Not only Silver Lake and KKR, Jio Platforms fetched investments from Facebook, Google, General Atlantic, Emirati sovereign fund Mubadala, L Catterton, TPG Capital among others. Ambani is likely to repeat the same feat with the retail business.

Reliance Retail runs supermarkets, consumer electronics chain, fashion outlets, online grocery store Jiomart. It operates almost 12,000 stores in around 7,000 towns. Last month Reliance's retail business bought assets of rival Future Group for Rs 24,713 crore -- almost doubling the footprint of its retail business. As part of the RIL-Future Group deal signed last month, Reliance Retail Ventures Ltd will acquire the retail and wholesale business and the logistics and warehousing business from the Future Group.

RIL has also invited other investors, including Facebook and Google, to pump in money in Reliance Retail Ventures. Preliminary negotiations with Facebook has also reportedly started.

According to Bloomberg Billionaires Index, Ambani's successful streak in pulling in investors for Jio as well as his retail business has also led to an increase in his personal wealth. He has added about $22 billion to his net worth this year.

Also read: Silver Lake invests Rs 7,500 cr in Mukesh Ambani's Reliance Retail for 1.75% stake

Also read: Reliance Retail-Silver Lake deal talks: 10 key points