India’s Reliance Industries said on Wednesday that private equity firm General Atlantic will invest in Rs. The purchase of a 0.84% stake in its retail unit Reliance Retail for £36.75 billion raised the stock price of the country’s most valuable company by 1%.
The transaction underscores the growing interest of investors in the expansion plans of the company headed by Mukesh Ambani as the company is diversifying from its main oil and gas business. In the fight for dominance in the Indian market, Reliance is seen as a strong competitor to Amazon and Walmart’s Flipkart.
Chairman Mukesh Ambani stated that Reliance will use General Atlantic’s extensive expertise at the intersection of technology and consumer businesses to expand its new commercial business and bundle groceries, clothing and other items in nearby stores. Online delivery of electronic products.
Relying on General Atlantic’s latest investment, the company has also invested in Airbnb, Slack and Uber, and now Reliance has raised approximately US$2.3 billion (approximately 169.47 billion rupees) for its retail division.
General Atlantic is also an investor in Reliance’s digital business Jio platform, and sources told Reuters this week that Abu Dhabi’s national fund Mubadala is investing up to 1 billion in the company’s retail division. US dollars (about Rs 7,373 crore) for advanced negotiations.
In India, the competition for market share has prompted e-commerce participants to seek new partnerships. The financial daily Mint reported on Tuesday that American retailer Wal-Mart is negotiating to invest US$25 billion (approximately Rs 18,338.30 crore) in the planned “super app” of the Tata Group, which will be linked to all consumer businesses of the group.
© Thomson Reuters 2020
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