Abu Dhabi state fund Mubadala Investment Co is in advanced talks to invest up to $1 billion in the retail division of India’s Reliance Industries
Ltd, two sources told Reuters, as investor interest in the Indian company surges.
Reliance Retail is on a fund raising spree and has secured around $1.8 billion in the past few weeks from KKR & Co and Silver Lake Partners.
A bird flies past a Reliance Industries sign in Ahmedabad, India. (Reuters)
“Reliance wants the same set of investors ... but some new investors could come in,” the source said.
Japan’s SoftBank Group had also expressed interest in investing in Reliance Retail, but the talks have not moved forward as the company was prioritizing other investors with which it has struck recent deals, the source said.
SoftBank did not respond to a request for comment.
Ambani’s push to seek investments in its retail business come as the oil-to-telecoms Indian conglomerate has been looking to expand its e-commerce operations to compete against Walmart’s Flipkart and Amazon.com’s Indian business.
A separate source said Amazon and Reliance have also been in talks, but there was no certainty of a deal on an investment in Reliance Retail.
“For Amazon, the issue is whether their own ambitions in India will collide with Reliance’s,” the source added.
An Amazon spokeswoman said the company has no comment on speculation about what it may or may not do in the future.