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Amazon to acquire 9.9% stake in Reliance Retail

Indian Startup Chamber

Admin
  • July 27, 2020
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While Mukesh Ambani is planning of buying Future group to strengthen its e-commerce ambitions, same time Jeff Bezos, CEO Amazon, according to reports is in talks with Reliance to acquire a 9.9% stake in Reliance’s retail arm. Amazon is looking to acquire stakes in Reliance Retail for JioMart.


At present, Amazon Pantry’ and Reliance JioMart are competing against each other to dominate the online grocery space. If everything goes well it is believed that Amazon’s operations in the grocery space will be strengthened, which is currently under the donation of companies like Bigbasket and Grofers.


Amazon Pantry has now expanded to over 300 Indian cities, and it's planning a big partnership with Jio Mart. JioMart which covers everything related to grocery, FMCG and consumer goods was launched in May this year and is currently available across over 200 cities in India.


It is expected that the entry of these big players in online grocery segment in India will change the status of market completely. Soon, Jio Mart is expected to become the biggest online grocery ordering platform in India. Just after two months of its release Jio Mart has been doing around 2.5 lakh orders a day.


JioMart’s  is even thinking of challenging the e-commerce majors Flipkart and Amazon in segments including fashions and electronics. Currently, Reliance Retail is the largest offline retailer in India and is also in its last leg to acquire Future Group. Reliance Retail will be Amazon fourth investment in the local mortar retailer, before this it has acquired stakes in Shoppers Stop, More and Future Coupons.


Apart from this Reliance telecom business Jio has currently raised a $20 billion investment in 2020 against a 33% stake in the company. Companies like Facebook, Silver Lake, and Vista Equity and Google have invested $4.5 billion in Jio platforms for a 7.7% stake.

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