96.47% FDI inflows in the last five years have gone to just six cities namely Mumbai, New Delhi, Bangalore, Chennai, Ahmedabad, and Hyderabad.
There is a full blown battle on between Amazon and Reliance Retail over the latter’s proposed acquisition of Future Retail.
Reliance Retail Ltd, a subsidiary of RRVL, operates India's largest, fastest-growing retail business serving close to 640 million footfalls.
The investment valued Reliance Retail, which runs grocery stores and fashion chains, at a pre-money equity value of Rs 4.21 lakh crore.
Reliance Retail Ventures has now raised Rs 37,000 crore after this investment following buyouts by Silver Lake, KKR, General Atlantic, Mubadala, GIC and TPG.
Through two separate deals, Reliance Industries will sell 1.63 per cent stake in Reliance Retail Ventures Limited (RRVL).
The investment will add fire to Ambani's battle for dominance in the retail market that is also being eyed by Jeff Bezos' Amazon.com and Walmart Inc's Flipkart.
The investment by General Atlantic values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crores and with this its investment will translate into a 0.84 percent equity stake.
The stock jumped 2.95 per cent to Rs 2,276.50 on the BSE. Reliance Industries was the top gainer in the Sensex pack.On the NSE, it gained 2.96 per cent to Rs 2,276.75.
Silver Lake's investment will translate into a 1.75 per cent equity stake in RRVL on a fully diluted basis.
Reliance in May started its online grocery shopping portal across India. The JioMart shopping app connects local kirana stores with consumers via WhatsApp.
Isha Ambani, Director, RRVL, said that this investment is aligned with our commitment to provide digital access for everyone in India.
Reliance Retail has emerged as the partner of choice for global investors and is on track to be the next big investment driver for Reliance Industries, after Jio.
Connecting farmers and delivering their fresh produce directly to homes is a key part of the firm's grocery strategy.
'JioMart has already started interacting with customers on WhatsApp for grocery orders' in Navi Mumbai, Thane and Kalyan, Credit Suisse said in a report.