Future Coupons, the promoter entity of India’s second-largest retail chain Future Retail, owned 7.3 per cent shares in the latter.
While, the financial details of the deal were kept confidential. The sources claimed that the deal could hold between ₹1500 crore and ₹2000 crore.
“We have been informed by Kishore Biyani on behalf of the existing shareholders forming part of the promoter group and Future Coupons Limited (promoters) that they have entered into a share subscription agreement and a shareholders’ agreement with Amazon.com NV investment Holdings LLC (Amazon),” Future Retail said.
Amazon is an American multinational technology company, based out of Seattle that focuses on e-commerce, cloud computing, digital streaming and artificial intelligence. It was founded by Jeff Bezos in 1994.
Whereas, Future Coupons Limited was incorporated in 2008. It is classified as Non-govt company and is registered at Registrar of Companies, Mumbai.
Future Retail has more than 1500 stores, including Big Bazaar, across 437 Indian cities and towns.
“Amazon has agreed to invest in Future Coupons Limited, which is engaged in developing innovative value-added payment products and solutions such as corporate gift cards, loyalty cards, and reward cards primarily for corporate and institutional customers,” the company added.
Amazon has been granted a call option, as per the agreement, which will also allow the unicorn giant to acquire all or part of the promoter’s shareholdings in the company.
Furthermore, the sources said, “The tie up between the two will enhance “Amazon’s existing portfolio of investments in the payments landscape in India.”