10% of India’s second largest retailer to be acquired by Amazon

The Amazon corporation is nearing a deal to acquire 10% of India’s Future Retail, Bloomberg reports, allowing the US behemoth to move in one of the world’s fastest-growing retail markets.

Future Retail is India’s second-biggest retailer and is privately owned and run by billionaire Kishore Biyani. The company operates 2,000 stores in 400 Indian cities and a 10% share of the company is currently valued at €250 million. Amazon is said to be negotiating an option to buy a bigger share in time.

According to retail consultants Technopak Advisors, India’s retail market is expected to double by 2023, from $79bn a year today to $188bn by 2023. In India, Amazon already shares in the Shoppers Stop grocery chain.

Future Retail runs a chain of grocery stores known as the “Big Bazaar,” allowing Amazon to expand its foothold on food retail, following the acquisition of the Whole Foods Market in the US for $13.7bn.

This is the second deal involving a US entry in India’s retail market. Walmart had spent $16bn to buy Flipkart Online Services, which supplies smaller grocery stores but has no direct access to consumers.

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