Reliance Retail has finally acquired a majority stake in Justdial. The company has bought a 66.95 percent stake of about Rs. 3,497 crore. The deal is expected to help Reliance to foray into payments and increase its presence in the commerce business.
Reliance Retail And Justdial Deal
In addition, the transaction is likely to help Reliance Retail to get Just Dial 30.4 million listings along with consumer traffic, which is about 129.1 million by the end of the last financial year. Reliance Retail will be known as the promoter after the deal.
However, V.S.S. Mani, the founder of Justdial will continue to head the business as chief executive officer and managing director.
"The investment in Just Dial underlines our commitment to New Commerce by further boosting the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises,'' said Isha Ambani, Director of Reliance Retail Ventures Limited (RRVL).
Deal Needs To Go Through Approvals
It is important to note the Reliance Retail and Justdial transaction is a matter of shareholder along with customary closing conditions approvals. For the unaware, Justdial launched its B2B platform. The JD Mart is looking at manufacturers, retailers, wholesalers, and distributors in India.
"Our vision has evolved to not only provide search and discovery but drive commerce across merchants through our B2B platform and enable the further consumer to merchant commerce given our platform engagement. Our strategic partnership with Reliance enables us to realize this vision and transform the business going forward," said VSS Mani, Founder, and CEO, Justdial.
Furthermore, Reliance Retail started its operations in 2006. Notably, the company opened supermarkets, carry stores, and online stores. The company also deals in the electronic category, such as Jio Stores, fashion, lifestyle, Trends Women, Trends Man, Trends Junior, Reliance Footprint, AJio.com, and Reliance Jewels.
Additionally, it has several large numbers of brand stores in the country. It seems that Reliance Retail wants to capture the entire sector, which is why it is trying its best to join hands with all brands that could help them to get such a position.