This is the third strategic investment in the retail unit of Reliance Industries Ltd (RIL), within a month.

The deal underscores growing investor interest in the Mukesh Ambani-led company's expansion plans as it diversifies from its mainstay oil-and-gas business. Reliance is being seen as a formidable rival to Amazon.com Inc and Walmart Inc's Flipkart as they battle for market dominance in India.

Wednesday's investment gives Reliance Retail a pre-money valuation of 4.29 trillion rupees ($58.17 billion), the company said.

Reliance, which in May launched an online grocery service, also operates around 12,000 brick and mortar stores.

Chairman Mukesh Ambani said Reliance would leverage General Atlantic's “extensive expertise at the intersection of technology and consumer businesses” to expand its new commerce venture, tying neighbourhood stores for online deliveries of groceries, apparel and electronics.

With the latest investment from General Atlantic - which has also invested in Airbnb, Slack and Uber - Reliance has now raised around $2.3 billion for its retail arm. General Atlantic is also an investor in Reliance′s digital business Jio platforms, and sources told Reuters this week Abu Dhabi state fund Mubadala Investment Co is in advanced talks to invest up to $1 billion in the company′s retail unit.