Reliance Industries Limited on Wednesday announced that Silver Lake will invest Rs 7,500 crore in Reliance Retail Ventures Limited (RRVL), a subsidiary of Mukesh Ambani’s Reliance Industries.

The US private equity firm’s investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore and will translate into a 1.75% equity stake in RRVL on a fully diluted basis.

After announcing an investment of USD 1.35 billion in Jio Platforms earlier this year, this will be the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary. 

Also Read: Isha Ambani, Akash Ambani, Adar Poonawalla named in Fortune’s 40 Under 40 list

Commenting on the joint venture with Silver Lake, Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said, “I am delighted to extend our relationship with Silver Lake to our transformational efforts of building an inclusive partnership with millions of small merchants while providing value to Indian consumers across the country in the Indian retail sector.”

“We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian Retail,” ANI quoted Asia’s richest man, as saying. 

Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest and fastest-growing retail business serving across its nearly 12,000 stores nationwide.

Through its new commerce strategy, Reliance Retail has started a digitalization of small and unorganised merchants and plans to expand the network to over two crores of these merchants, helping them benefit from the use of technology tools and efficient supply chain infrastructure.

Expressing his delight over the new venture, Egon Durban, Co-CEO and Managing Partner of Silver Lake, said, “We are pleased to deepen our relationship with Reliance with this investment. The success of JioMart in such a short time span, especially while India, along with the rest of the world, battles the COVID-19 pandemic, is truly unprecedented, and the most exciting growth phase has just begun.”

“Reliance’s New Commerce strategy could become the disruptor of this decade. We are thrilled to have been invited to partner with Reliance in their mission for Indian Retail,” ANI quoted Durban, as saying.

A global leader in large-scale technology investing, Silver Lake has more than USD 60 billion in combined assets under management, with investments in Twitter, Alibaba Group, Airbnb, City Football Group and UFC amongst many others.