Amazon nears deal with Future Retail for upto 10%


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(Last Updated On: August 26, 2019)

Amazon is at its final stages of closing a deal to acquire 10% of one of India’s largest
retail companies, Future Retail. Future is seeking an esimate of Rs 20 billion ($281
million) from Amazon, according to sources from the private discussion.
The deal is expected to close within the next few weeks for the Kishore Biyani-led
company. Both companies declined to comment on speculation. If the deal goes
through, it will help strengthen Amazon’s foothold in the Indian market, where it
continues to operate in the online marketplace.
Although talks between Amazon and Future have been ongoing for the past few
months, it has recently com to a stand-still as the Indian government, earlier this year,
had tightened its FDI rules for e-commerce marketplaces.
The new regulations block online marketplaces with international investments from
selling goods of the company in which they hold stakes, as well as banning exclusive
marketing arrangements.
However, discussions have restarted and final plans are being drawn, according to
other sources. This would be Amazon’s third investment into India’s brick-and-mortar
retail ecosystem, helping Amazon compete against Mukesh Ambani’s propsed
e-commerce venture as well as Walmart-backed Flipkart. It would also be beneficial to
Future Retail as the funds and expertise will strenthen their online presence.


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