By Kosaku Narioka

Reliance Industries Ltd. said Wednesday that U.S. private-equity company KKR & Co. would invest INR55.50 billion Indian rupees ($754.9 million) in its retail unit.

The Indian energy and retail conglomerate said KKR's investment would represent a 1.3% stake in Reliance Retail Ventures Ltd.

Earlier this month, Reliance Industries said that U.S. private equity firm Silver Lake would invest $1.02 billion in the retail unit.

Reliance Industries said the retail business has started a digitalization of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants.

KKR's planned stake purchase in its retail unit is the U.S. private-equity company's second investment in a Reliance unit following KKR's INR113.67 billion investment in its digital services business Jio Platforms Ltd.

Morgan Stanley acted as financial adviser to its retail unit and Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR, Reliance Industries said. 



  Write to Kosaku Narioka at kosaku.narioka@wsj.com