LONDON: 抖阴短视频鈥檚 Public Investment Fund has taken a $1.3 billion stake in India鈥檚 biggest retailer.

The government fund acquired the 2.04 percent stake in Reliance Retail Ventures (RRVL), it said in a statement on Thursday.

It is the latest high-profile international deal concluded by the fund that has increased its global profile this year.

Reliance Retail operates about 12,000 stores across the country鈥檚 strategically important retail sector.

鈥淭his investment will further strengthen PIF鈥檚 presence in India鈥檚 dynamic economy and promising retail market segment,鈥� the PIF said.

This latest expansion in India follows an earlier acquisition of a 2.32 percent stake in Jio Platforms, the digital services unit of Reliance Industries.

The Reliance conglomerate has interests in oil, petrochemicals and telecoms and is controlled by Indian billionaire Mukesh Ambani who is now investing heavily in the booming technology sector.

India鈥檚 retail industry is one of the largest in the world, accounting for 10 percent of the country鈥檚 GDP. However the sector has been hit hard by the coronavirus pandemic, which has had a devastating impact on the wider economy.

PIF Governor Yasir Al-Rumayyan said: 鈥淭his investment further demonstrates PIF鈥檚 commitment to generating returns for the Saudi people and driving the economic diversification of 抖阴短视频.鈥�

Earlier this year the PIF completed the sale of its 70 percent stake in Saudi Basic Industries Corporation (SABIC) to Saudi Aramco for about $69.1 billion.

The Reliance retail deal represents the latest in a flurry of acquisitions by the Saudi fund as it seeks to diversify its holdings while also tapping attractive valuations across many sectors that have been impacted by the pandemic this year.

Abu Dhabi investment fund Mubadala said last month it also planned to invest more than $843 million in RRVL.