Now, this is an interesting story that has developed, reported by ET Now, the world’s richest man Jeff Bezos, the CEO of Amazon seems to be buying stakes from the world’s fifth-richest Mukesh Ambani which could actually be a mega-deal for India. According to their sources, Mukesh Ambani’s Reliance Retail is talking to Amazon to be an investor for up a 9.9% stake.
This is pretty interesting because of the fact, till now, Reliance Jio platforms has seen heavy investments from the likes of Google, Facebook, Intel, Qualcomm and others. But now it seems Reliance wants to expand its retail business with the help of Amazon, who is also an eCommerce giant in India with a variety of products available for the Indians.
As ET Now’s reports, the talks seem to be at a preliminary stage. According to global giant Morgan Stanley, the valuation of Reliance Retail is $29bn, and its revenues are reported to be around $20bn last year. Reliance is expanding its retail chain this year via its new platform JioMart, which is currently delivering essentials, food, grocery and other household items to customers.
Amazon, however, wants to have a preferred strategic stake in Reliance Retail for JioMart and both the companies are discussing this possibility for Amazon to get preferential access to JioMart. The most interesting fact is, all these discussions have taken place because of another deal, wherein Reliance Retail wanting to take a controlling stake of Future Retail.
Reliance Retail is planning to expand its business and actually take benefit of the current COVID-19 situation which has facilitated the online retail business. Also, its recent decision to remove any minimum order requirements in its JioMart platform has seen a healthy reaction from customers and as Mukesh Ambani said at the 43rd AGM of RIL, more global partners and investors will be joining in Reliance Retail, this story actually makes sense.
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