Investments in RRVL May Now be Directed to Ramp Up JioMart's Foray into Fashion
A woman walks past a poster of Reliance Industries installed outside the venue of the company's annual general meeting in Mumbai. (REUTERS/Vivek Prakash/File Photo)
Reliance Retail Ventures Ltd on Monday raised Rs 5,512.50 crore from Abu Dhabi Investment Authority (ADIA), taking the total fundraise to Rs 37,710 crore in less than four weeks. The investment values RRVL, the retail arm of Reliance Industries Ltd, at a pre-money equity value of Rs 4.285 lakh crore.
The investments equip Reliance Retail with funds to compete in both offline and online formats.
Meanwhile, JioMart has expanded beyond grocery segment nearly three months after Reliance’s Chairman had announced plans to foray into electronics, fashion, pharmaceutical and healthcare verticals during the 43rd AGM in July.
The private entity has added fashion category onto its web portal and app for men, women, boys, kids and infants with limited brands, according to details available on the portal and app.
The investments come as the country's retail sector prepares for the upcoming festival season and would help Reliance to launch an assault on rivals such as Walmart-owned e-commerce company Flipkart and Amazon. Reliance Retail Ltd, a subsidiary of RRVL, operates India's largest, fastest-growing and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets and online grocery store JioMart.
It operates about 12,000 stores in nearly 7,000 towns, with 640 million footfalls across core categories of grocery, consumer electronics and apparel. Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, "The investment by ADIA is a further endorsement of Reliance Retail's performance and potential and the inclusive and transformational new commerce business model that it is rolling out".
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