Reliance Industries said on Wednesday that Silver Lake Partners, a US private equity firm, will invest US$1.02 billion (about Rs 74.89 billion) in its retail business to help companies controlled by Mukesh Ambani expand its leading position as India’s largest retailer.

The move also laid the groundwork for a tripartite struggle between Jeff Bezos’ Amazon and Walmart’s Flipkart to attract Indian middle-class customers due to the COVID-19 pandemic.

In May, Reliance launched JioMart, an online grocery service. It has been actively expanding its retail business through acquisitions, surpassing the main oil and gas business.

Silver Lake will acquire 1.75% of Reliance Retail’s shares, giving the company’s pre-trade stock value Rs. Reliance said that this number is 421 billion. With the support of Reliance’s Jio technology platform, the department has a variety of retail operations, including grocery stores and fashion chains, and operates nearly 12,000 stores.

Harminder Sahni of Wazir Advisors, a retail consulting firm, said: “The real competition will be between Amazon, Wal-Mart and Reliance.” “Wal-Mart is self-financing, and so is Amazon. Therefore, the company that can now bet is Reliance.”

Reliance has been raising funds, but its share price has risen 1.5% in the weak Mumbai market.

Silver Lake’s investment portfolio includes shares in Airbnb and Twitter. It has previously invested in Reliance’s digital business as part of this round of financing. The Indian company has raised more than $20 billion (about $20 billion) from investors such as Facebook and Alphabet’s Google. 1,468.57 billion rupees).

Bloomberg reported on Wednesday that KKR is in advanced negotiations to invest at least US$1 billion (about Rs 7,341 crore) in Reliance Retail, citing people familiar with the matter. When contacted by Reuters, Reliance declined to comment on the report.

See also  Rocky Episode 6: Jonathan Majors (Jonathan Majors) left behind, explained

© Thomson Reuters 2020

Does Android One hinder Nokia’s smartphones in India? We discussed this on the weekly technical podcast Orbital, you can subscribe via Apple Podcast, Google Podcast or RSS, download the episode, or click the play button below.