Alibaba, Amazon in talks to acquire stake in Spencer’s Retail

Must Read

Sanju Samson to replace Shikhar Dhawan in T20 series against WI

Sanju Samson will replace injured Indian opener Shikhar Dhawan in the T20s series against West Indies starting from next...

Supreme Court lashes out on Centre & Delhi govts for Rising Pollution

The Apex Court of the Country, the Supreme Court on Monday lashed the Central and State Government for their...

Harbhajan Singh wishes BCCI Prez Sourav Ganguly to change Selection Panel

The Indian off-spinner Harbhajan Singh on Monday urged Sourav Ganguly, President of BCCI (The Board of Control for Cricket...

Chinese e-commerce giant Alibaba and US-based e-tailing behemoth Amazon, are reportedly in talks with RP-Sanjiv Goenka (RPG) Group, to acquire a minority stake in Spencer’s Retail, a food and retail arm of RPG Group.

There have been reports of Alibaba executives being in Kolkata, to discuss possible investment opportunities in Spencer’s Retail. Alibaba could be exploring the Indian retail industry, to establish its foothold in the country.

The news has not been confirmed by Alibaba, Amazon, or RPG Group.

The news comes soon after it was reported that Amazon and Samara Capital had acquired Aditya Birla Group’s retail chain ‘More’. The deal has been done through Witzig Advisory Services, owned by Samara Capital, with Amazon acquiring the minority 49% stake.

According to reports, the deal with Amazon is expected to be in the penultimate stage but was held up due to valuation. Reportedly, Spencer’s is looking for a better valuation, compared to Aditya Birla Group’s grocery and retail chain ‘More’, claiming that Spencer’s Retail is a profitable chain, which will generate a better return on investment.

Kolkata-based Spencer’s Retail has 128 stores across more than 30 cities in India, including 58 large-format, hypermarkets and supermarkets.

Amazon has been aggressively looking to expand into the Indian food and grocery domain, seeing as its Indian rival, Flipkart has ventured into online grocery domain, with the launch of its online grocery store Flipkart Supermart.

With Flipkart besting Amazon in the e-commerce space, gaining a greater market share, Amazon is exploring an omnichannel strategy to strengthen its footprint in India.

Amazon invested ₹100 crores ($14 million) in Amazon Retail, to strengthen its food business in India. Amazon had also committed an additional $500 million for its food retail business in India.

According to an IBEF report, India’s retail market is expected to increase by 60 per cent to reach US$ 1.1 trillion by 2020, on the back of factors like rising incomes and lifestyle changes by middle class and increased digital connectivity.


Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Food aggregator unicorn Zomato will reach profitability by 2020, says co-founder Deepinder Goyal

Deepinder Goyal, co-founder and CEO at Zomato, a food aggregator and tech-food unicorn, has announced that the platform will...

Mutual funds investment marketplace Nivesh raises $600,000 from The Next Billion Fund, other marquee investors, mutual funds investment marketplace, has bagged $600,000 (approx INR 4 crore) from Windrose Capital's The Next Billion Fund, other marquee investors, reported Yourstory. The...

Delhi Fire Tragedy: Owner of the building arrested

Rehan, the owner of the building where a fire broke out in Delhi earlier today, has been arrested by Delhi Police. A case has...

Amit Shah to table Citizenship bill in Lok Sabha tomorrow

Union Home Minister Amit Shah will table the Citizenship (Amendment) Bill in the Lok Sabha on Monday. The bill seeks to grant Indian citizenship...

Delhi fire tragedy: How it all started

More than 140 illegal factories were operational in the narrow lane of Anaj Mandi of Karta Gauri Shankar. The fire started from the 600sq...
- Advertisement -

More Articles Like This