Amazon to pick up 9.5% stake in Indian offline retailer
US e-commerce firm's investment arm will reportedly pick up 9.5% stake in India's Future Retail in a deal pegged at 25 billion rupees
Close on the heels of US retail giant Walmart acquiring Indian e-commerce firm Flipkart, US online major Amazon is cutting deals with offline retailers in India to bolster its reach.
The Seattle based e-commerce firm’s investment arm is set to pick up a 9.5% stake in India’s Future Retail, the retail arm of Future Group. The deal is pegged at 25 billion rupees and is expected to be finalized next week, the Economic Times reports.
Future Retail enjoys nearly one-third of the market share in India’s organized food market with a total retail space of 14.8 million square feet and a presence in 340 cities. It runs numerous retail chains such as Big Bazaar, Nilgiris and EasyDay. The deal would give Amazon access to tap these vast properties.
Amazon had earlier acquired a stake in More supermarkets from Aditya Birla Retail and Shopper’s Stop, a department store chain owned by the K Raheja Corp Group.
The US firm had earlier received government approval for its proposed $500 million entry into the food sector and is ramping up its Amazon Pantry and Amazon Now initiatives.