Amazon is negotiating a 9.9% stake in Indian billionaire Mukesh Ambani Reliance Retail.
This was disclosed after Mukesh Ambani stated at the annual general meeting of Reliance that Reliance Retail may receive strong interest from strategic and financial investors.
Amazon may become the third giant to get part of Reliance Industries, but instead of buying a stake in the famous Jio Platforms, Amazon is targeting the group's retail arm.
Reliance Retail is India's largest retailer with revenues in excess of $ 21 billion. Founded in 2006, it is the largest retail chain in India. Serving more than 3.5 million customers every week with about 10,000 stores in over 6,500 cities and towns.
Jeff Bezos seeks this partnership to enhance the presence of Amazon in the developing markets and confront Walmart, owner of Flipkart, which accounts for 30% of the Indian e-commerce market.
Earlier this year, Reliance Retail launched the JioMart market, an e-commerce joint venture between Reliance Retail and JioPlatforms. JioMart delivers grocery items and daily essentials from nearby grocery stores. In May 2020, JioMart was launched in 200 cities and towns across India.
Amazon wants a strategic stake in JioMart, according to the report.
Jio Mart may become a strong competitor to Amazon in India, which is one of the most populous Amazon markets.
Run by Asia's wealthiest man, Mukesh Ambani, Reliance, has managed to raise about $ 20 billion since late April for its digital arm Geo Platforms, and has included a list of contributors: Alphabet, Google, and Facebook.
Amazon is expected to continue to invest heavily in the country, at about $ 1 billion annually.