Reliance Retail's next cheque: Mubadala in talks to invest up to $1 billion

Abu Dhabi state fund Mubadala Investment Co could hand over the next cheque to Mukesh Ambani's Reliance Retail. After its investment of $1.2 billion in Jio Platforms, Mubadala is in talks to invest up to $1 billion in Reliance's retail arm.

This development comes after private equity firm KKR's investment of $754 million for 1.28% stake and Silver Lake Partners' $1 billion investment in Reliance Retail.

Mubadala, after its investment in Jio Platforms has held extensive talks for investment in the retail venture, as mentioned in a report in Reuters. Mubadala "is ready" with $1 billion for Reliance Retail and is undertaking due diligence, as mentioned in the report. The investment could be anywhere between $500 million and $1 billion.

A Reliance spokesman said the company cannot confirm or deny any transaction, and added  the "company evaluates various opportunities on an ongoing basis." Mubadala declined to comment.

Mukesh Ambani has approached investors who collectively pumped in more than $20 billion into Jio Platforms to pick up stakes in Reliance Retail. The retail business has over 12,000 stores across the country and sells a wide range of products from groceries to fashion and from electronics to shoes.

Mubadala, the second-biggest state investor in Abu Dhabi after Abu Dhabi Investment Authority, believes that it is under-invested in Asia and is looking to expand its portfolio.

While most of Jio Platforms' investors look like they will pick a stake in Reliance Retail, it is yet to be seen if Facebook and Google follow suit. According to the report, new investors could come in.

Japan's SoftBank Group is one of the potential investors in Reliance Retail but talks have not moved forward.

Also read: Mukesh Ambani's Reliance Retail sells 1.28% stake to KKR for Rs 5,550 crore

Also read: How big is Mukesh Ambani's Reliance Retail