Amazon, the world leader in the retail market has been worried by the law that is passed in the Indian parliament. According to the new law, any foreign firm cannot have their own inventory in the country.
Rumors have always been surfaced that Walmart acquired Flipkart is not the real competitor of Jeff Bezos led Amazon. The real competitor of the richest man on the planet is none other than the richest man of India.
To tackle the law and make sure that it remains at the top of the food chain. Amazon has decided to invest big time in ‘More’.
Amazon and private equity firm Samara Capital have invested Rs 275 crore, in the More supermarket chain.
Samara has 51% holding Witzig the parent of More Supermarket chain. The company has supposedly invested more than Amazon.
This investment is the first infusion of funds into More since it was acquired by the duo from Aditya Birla Group in 2018.
This investment is set to boost the e-grocery market of Amazon. As the festive season approaches, people can place orders of grocery online on the Amazon website or app. The company will be able to fulfill these orders quickly from the nearby More Supermarkets.
There is however another particular reason for the sudden investment.
Reliance Retail has recently bought including Big Bazaar, Easyday, and Foodhall, with a whopping Rs 24,713 crore deal. This deal has provided Reliance Retail access 1,800 stores across the country.Â
Amazon has many competitors in the Indian market. It competes with Walmart-owned Flipkart and Reliance’s JioMart. Not to mention it competes with Bigbasket, Groffers, and Google-backed Dunzo for online groceries.
With retail rapidly bringing kiranas and local shops onto their platforms. The problems don’t seem to over for the richest man on the planet.
The retail market is estimated to be around $1.2-trilllion retail market. Only 7% of this market is online. The remaining 93% are independent and small retail owners.
However, online retail business owners have started to eye the remaining 93%. It is a race to acquire the biggest share in the retail market between Amazon and Reliance. only time will tell who will become the biggest retailer in the Indian market.
Do check out:
