Reliance Retail Ventures (RRVL) has agreed to acquire a controlling stake of 66.95% in Just Dial, an Indian local search engine platform, for INR 3,497 crores ($470 million).

The Reliance Industries subsidiary said that first, it will make an open offer to purchase up to 2.12 crore equity shares, equivalent to 25.33%, in Just Dial Limited. The price offered is INR 1,022.25 per share.

Following this, Reliance Retail Ventures will acquire 1.31 crore equity shares, which is a stake of 15.62%, in the local search engine platform from VSS Mani at the same price of INR 1,022.25 per share.

The retail arm of Mukesh Ambani’s conglomerate will also make a public announcement to Just Dial’s public shareholders to purchase up to 2.17 crore equity shares, representing a stake of 26%, in accordance with SEBI Takeover Regulations.

VSS Mani will continue in the roles of managing director and CEO of Just Dial.

Just Dial’s local search engine platform offers search related services to users in India via various platforms like website, apps, text, and over the telephone.

Recently, Just Dial introduced its B2B marketplace platform – JD Mart, which is said to enable Indian manufacturers, distributors, retailers, and wholesalers to get new customers and sell their products online.

VSS Mani – Founder and CEO of Justdial said: “Nearly 25 years ago, we had a vision to build a connected single platform dedicated to providing fast, free, reliable and comprehensive information to our users and connect buyers to sellers. Our vision has evolved to not only provide search and discovery but drive commerce across merchants through our B2B platform and enable 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.”

The capital infused by Reliance Retail Ventures to help drive Just Dial’s growth and expansion into an inclusive local listing and commerce platform.

The internet technology company will expand discovery on its platform as well as improve transactions for millions of products and services, said Reliance Retail Ventures.

As on 31 Mar 2021, Just Dial had a database of nearly 30.4 million listings and consumer traffic of around 129.1 million quarterly unique users.

Isha Ambani – Director of Reliance Retail Ventures said: “Reliance is excited to partner with Justdial and Mr. VSS Mani, a first-generation entrepreneur, who has created a strong business through his business acumen and perseverance.

“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. We look forward to working with the highly experienced management team of Just Dial as we further expand the business going forward.”

The deal will be contingent on shareholders’ approvals, regulatory approvals, and other customary closing conditions.

  India, Isha Ambani, JD Mart, Just Dial, Mukesh Ambani, Reliance Industries, Reliance Retail, Reliance Retail Ventures, VSS Mani