Reliance Retail is set to raise Rs 4,500 crore through term loans and debentures to build its eCommerce business and accelerate store openings.
The Mukesh Ambani-led retail company will avail term loans to the sum of Rs 2,500 crore from State Bank of India and raise another Rs 2,000 crore by issuing convertible debentures.
“Reliance Retail is growing rapidly and these are enabling provisions to fund a growing and profitable business,” a Reliance spokesperson said. “The funds will be utilised, as appropriate, for business operations.”
Major retailer competitors of Reliance, Future Group and the Aditya Birla Group are planning big online retail initiatives across product categories to take advantage of the increasing adoption of ecommerce, which is expected to grow fourfold to almost $70 billion, or about Rs 4.34 lakh crore, by 2019 according to ET. Thus, Reliance Retail is also piloting an online site for food and grocery products.