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Abu Dhabi’s Adia Bets Big On Reliance Retail

ADIA’s investment will translate into a 0.59 per cent equity stake in RRVL on a fully-diluted basis….reports Asian Lite News

Reliance Retail Ventures Limited (RRVL) revealed that a fully-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will be infusing Rs 4,966.80 crore into RRVL, which is a subsidiary of Reliance Industries Limited.

This transaction places RRVL’s pre-money equity value at Rs 8.381 lakh crore, positioning it among India’s top four companies by equity value.

According to a media release by Reliance Retail, ADIA’s investment will translate into a 0.59 per cent equity stake in RRVL on a fully-diluted basis.

RRVL, along with its subsidiaries and associates, operates India’s largest and fastest-growing retail business, catering to an impressive 267 million loyal customers.

The company boasts an integrated omnichannel network, encompassing over 18,500 stores and digital commerce platforms, spanning grocery, consumer electronics, fashion and lifestyle and pharmaceuticals.

RRVL’s vision is to revolutionise the Indian retail sector through an inclusive strategy, serving millions of customers, empowering micro, small, and medium enterprises (MSMEs), and fostering collaborations with global and domestic firms.

This approach aims to deliver substantial benefits to Indian society, while concurrently generating employment opportunities for millions of Indians.

RRVL’s New Commerce business has already digitally transformed over 3 million small and unorganized merchants, enabling them to utilize technology tools and an efficient supply chain infrastructure to offer enhanced value to their customers, according to a release.

Isha Mukesh Ambani, Executive Director, Reliance Retail Ventures Limited, said, “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited. Their long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving transformation of the Indian retail sector. ADIA’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy and execution capabilities.”

Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said, “Reliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace. This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end-markets. We are pleased to partner with the Reliance Group, and increase our exposure to India’s dynamic and fast-growing consumer sector.”

Reliance Industries Limited (RIL), the parent company of RRVL, is India’s largest private sector enterprise, with diverse interests spanning hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewables, retail, and digital services.

RIL consistently ranks among the world’s largest and most influential companies, highlighting its significant global footprint.

This transaction is subject to customary approvals. Morgan Stanley served as the financial advisor to Reliance Retail Ventures Limited, while Cyril Amarchand Mangaldas and Davis Polk and Wardwell acted as legal counsels. (ANI)

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Reliance Retail now accepts digital rupee

The CBDC is the a digital version of fiat money that will co-exist will hard cash….reports Asian Lite News

Reliance Retail on Thursday announced it has begun accepting retail payments via the Indian government’s Digital Rupee across its stores in the country.

Reliance Retail launched the first in-store acceptance of the RBI-created and Blockchain-based Central Bank Digital Currency (CBDC) at its gourmet food store Freshpik here.

The CBDC is the a digital version of fiat money that will co-exist will hard cash.

“This historic initiative of pioneering the digital currency acceptance at our stores is in line with the company’s strategic vision of offering the power of choice to Indian consumers,” said V. Subramaniam, Director, Reliance Retail.

“With more Indians willing to transact digitally, this initiative will help us provide yet another efficient and secure alternative payment method to customers at our stores,” he added in a statement.

Reliance Retail has collaborated with ICICI Bank, Kotak Mahindra Bank and fintech Innoviti Technologies to launch the in-store support for the digital rupee.

“Digital Rupee fulfils the need of consumers who still prefer the trust, safety and settlement finality of physical currency,” said Rajeev Agrawal, Founder and CEO of Innoviti Technologies.

The RBI kicked off the first phase of a retail CBDC pilot in four cities and involving four key banks late last year.

A CBDC can play a key role in providing access to digital payments without the requirement of a bank account and the access would be facilitated by a central bank-issued digital wallet.

Use of e-rupee is expected to make the inter-bank market more efficient.

Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk.

Going forward, other wholesale transactions, and cross-border payments will be the focus of future pilots, based on the learnings from this pilot project.

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