Amazon Inc is in talks to buy a 9.9% stake in the retail arm of Indian conglomerate Reliance Industries Ltd.
Amazon wants a preferred, strategic stake in Reliance Retail for JioMart, according to various sources.
Jio Mart, the E-commerce venture of Reliance’s retail arm, was launched in May and poses a formidable challenge to Amazon.com’s local unit and Walmart Inc’s Flipkart.
Earlier this year, Amazon India launched a program to add small local shops on its platform after India went into a lockdown to curb the spread of the corona virus outbreak.
Reliance, controlled by Asia’s richest man, Mukesh Ambani, has raised around $20 billion since late April for its digital arm, including from Alphabet Inc’s Google and Facebook Inc.
Earlier Google has become the latest high-profile firm to back India’s Reliance Jio Platforms. The search giant is investing $4.5 billion for a 7.73% stake in the top Indian telecom network.
Facebook invested $5.7 billion in Reliance Jio Platforms, which has amassed more than 400 million subscribers in less than four years of its existence, in April this year for a 9.99% stake in it. Facebook is the largest minority stakeholder in Jio Platforms.
Categories: Business, India, News Analysis