Amazon will acquire a 9.5 percent stake in Mumbai-based Future Retail that has more than 1,000 stores across India. The deal is estimated at $450 million.
While India allows 51 percent overseas investment in multi-brand retail, a foreign portfolio investor can acquire less than 10 percent as a single firm in an Indian company. Amazon India is focusing on its Amazon Pantry and Amazon Now initiatives.
Once the deal follows through in mid-November, the e-commerce platform will have access to almost a third of India’s organized food and grocery market. The food and grocery segment is expected to become the country’s fastest-growing retail segment, contributing to 12.5 percent of all online retail sales.
