Reliance Retail acquires controlling stake in Indian search firm for $469m

India-based Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited, has acquired a controlling stake in Just Dial, a 25-year-old publicly listed firm that offers services like local search and ecommerce, among others.

Reliance Retail said it would acquire a 41% stake in Just Dial for US$469 million. It would also make an open offer to acquire an additional 26% stake.

RIL chairman, managing director Mukesh Ambani/ Photo credit: Flickr

Following the acquisition, Just Dial managing director and chief executive officer VSS Mani will continue to lead the firm.

According to Reliance Retail, the fresh capital injection will allow Just Dial to grow as a local listing and commerce platform.

The deal will also help Reliance Retail leverage Just Dial’s large database, comprised of 30.4 million listings and consumer traffic of 129.1 million quarterly unique users as of March 31, 2021.

Launched in 1996, Just Dial began as a phone-based service to help customers connect with the service providers such as electricians or florists. The company now covers listings from various categories, including travel, credit services, and consumer electronics. The company says its services are available in more than 250 cities across India.

“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 RRVL director Isha Ambani in a statement.

Just Dial joins a growing list of companies Reliance Industries Limited has acquired or bought stakes through its subsidiaries in the last couple of years.

Reliance Retail acquired a 60% stake in e-pharma firm Netmeds for US$83.2 million in August last year. It also acquired an online furniture startup Urban Ladder for US$24.4 million in November last year.

Before these, Reliance has acquired British toy retailer Hamleys for US$92 million and acquired a 15% stake in lingerie retailer Zivame for US$160 million.