Amazon is reportedly close to buying a 10% stake in one of India's largest retailers, and it could be another sign that it's making a big push into the country
- Amazon is close to purchasing a 10% stake in Indian retail giant Future Limited Retail, according to Bloomberg.
- The deal would mark another sign that Amazon is looking to expand in India following a report that it's planning to purchase a 26% stake in Indian retailer Reliance Retail.
- Future Limited Retail operates a supermarket chain in India called Big Bazaar, which would also signify another push by Amazon into the grocery market.
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Amazon is eyeing a 10% stake in Indian retail giant Future Retail Limited, according to a new report from Bloomberg.
The Seattle-based e-commerce behemoth is reportedly in late-stage talks with Future, which is said to be seeking a valuation of $281 million, or 20 billion rupees. Future's portfolio includes more than 1,534 retail locations in more than 400 cities and towns in India across several different chains, including its Big Bazaar supermarkets among other food, home, and lifestyle brands.Such a deal would be the latest sign that Amazon could be looking to push deeper into India, which is expected to host an e-commerce market that could be worth $200 billion by 2026 according to the India Brand Equity Foundation.
Earlier this month, for example, Indian newspaper The Economic Times reported that Amazon was planning to purchase a 26% stake in Reliance Retail, one of the country's largest brick-and-mortar retailers.
Expanding in India could be critical for Amazon after one of its biggest rivals, Walmart, purchased a controlling stake in Indian e-commerce giant Flipkart for $16 billion last year.
Amazon did not immediately respond to Business Insider's request for comment.
The reported discussions about acquiring a stake in the company behind one of India's prominent supermarket chains also comes as Amazon is said to be deepening its presence in the grocery space. The company is considering a new grocery chain that would remain separate from Whole Foods, which it acquired in 2017 for $13.7 billion, according to reports from The Wall Street Journal and The New York Times.This new supermarket could combine in-store shopping with online ordering, as the Times reports. Amazon could open the first store in its new chain of grocery markets in Los Angeles as soon as the end of the year, according to the Journal. The Journal, however, does not indicate whether this store will combine physical and online retail as described in the Times' report.