Qatar’s sovereign wealth fund Qatar Investment Authority (QIA) is in talks to buy a minority stake in Mukesh Ambani’s Reliance Retail Ventures (RRVL), according to a report by Financial Times.

One of the quoted sources further revealed that QIA is considering an investment of $1 billion giving it a stake of about 1% and valuing the business at around $100 billion. However, the agreement deal is yet to be finalised and is subject to change.

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Another source said that the $450 billion Qatari sovereign wealth fund had not yet approved it. The reports came amid Reliance Retail spending heavily to expand its consumer business.

Analysts at AllianceBernstein, as cited by FT, estimated in May that Reliance Retail was worth as much as $131 billion, a valuation that would give QIA a 0.7% stake for a $1 billion investment.

In 2020, Saudi Arabia’s Public Investment Fund had invested $1.3 billion for 2.04% stake in RRVL, which valued the company at $6.2 billion at that point. 

QIA has also invested in other various Indian startups as well like Swiggy and Rebel Foods.

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Reliance Retail, which is headed by Mukesh Ambani’s daughter Isha Ambani Piramal, has core retail businesses including digital and physical stores around the country. The company has also partnered with a slew of global brands like Burberry, Pret A Manger and Tiffany to launch and expand their presence in India.

In its latest quarterly earnings report, Reliance said that its retail business recorded a quarterly revenue of Rs 69,948 crore, up 19.5% YoY while EBITDA of Rs 5,139 crore was up 33.9% year-on-year (YoY).

“I am delighted to share that our financial performance in the quarter has been resilient and aligned with our business goals. The sustained growth across consumption baskets has further consolidated our position as a market leader. We continue to innovate and invest in our stores and digital platforms to make shopping more engaging for our customers," said Isha M Ambani, Executive Director, RRVL.