U.S. e-commerce conglomerate Amazon has acquired a minority stake in Indian retail giant, Future Retail, according to a regulatory filing.
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The Asian operator of some 900 stores and several major supermarket chains is now 3.58%-owned by Amazon, on the back of the American company’s 49% acquisition of Future Coupons, which holds a 7.3% stake in Future Retail.
Both Amazon and Future Coupons failed to disclose the value of the deal. Future Retail, which operates Big Bazaar, among other brands, also declined to comment.
However, Future Retail’s market capitalisation is valued at $2.91 billion, making the 3.58% stake in the company estimated to be worth some $104 million for Amazon, as reported by Reuters.
The new deal gives Amazon the right of first refusal on the occasion that Future Retail’s founder, Kishore Biyani, or his family decide to further trim their stake in the company, both directly and via entities like Future Coupons that they control, said the filing.
The news comes on the back of Amazon’s stake purchase in Indian supermarket perator last year. At the time, Amazon and Indian private equity firm Samara Capital formed a joint investment that would give Amazon a vested interest entity in the retail chain.
More recently, Amazon revealed plans to open its biggest campus in the world, located in the southern Indian city of Hyderabad.
According to Reuters, India is the last major growth market for the e-commerce giant.
Amazon founder Jeff Bezos has committed investments of more than $5 billion toward Amazon’s expansion in India.
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Amazon’s India campus launch comes a few months the American company reneged on plans to build a second global headquarters in New York.