Reliance clinches another cut-price deal; numbers behind edtech mess

After a 19-year grind in India, German food wholesaler Metro AG is selling off its local B2B arm. Reliance Industries has the deal for Metro Cash & Carry sewn up for €500 million, a 28% discount to Metro’s gross revenues in FY21. 

The transaction includes 31 wholesale distribution centres, land banks and other assets. This represents yet another win on the cheap for Reliance. More on that in a bit.

Food-delivery major Swiggy, which runs quick-grocery service Instamart, VC firm Lightspeed Venture Partners and wholesale player Siam Makro also bid for Metro Cash & Carry. Siam Makro later dropped out.

Metro’s ride out: With the sale finalised, a weight has been lifted off Metro AG’s shoulders, and it can exit a complicated and expensive market. Back in 2003, it was the first to operate the B2B retail model in the country and saw some good times.