- Qatar's sovereign wealth fund is investing $1 billion in Reliance Retail, the largest retail chain in India, aiming to support the company's expansion efforts and entry into new business categories. This investment will grant the Qatar Investment Authority a 0.99% stake in Reliance Retail Ventures, with the valuation of the Indian company reaching $100 billion. Reliance Retail presently operates an extensive network of 18,500 stores and digital commerce platforms, offering a diverse range of products from electronics to fashion and pharmaceuticals.
- In 2020, the company was valued at $62.4 billion following a funding round that raised over $6 billion from investors including Saudi Arabia's Public Investment Fund and private equity leader KKR. The investment aligns with Reliance Retail's strategy of diversification, as it expands into new sectors like affordable fast-fashion and contemplates a potential public listing.
Why it matters
This move also comes amidst the company's acquisitions and integrations of various businesses. While already engaging in e-commerce, such as through a collaboration with Meta's WhatsApp for grocery sales, Reliance Retail faces competition from dominant players like Walmart-owned Flipkart and Amazon India in the South Asian e-commerce market.
