The Indian Wire » Startups » Amazon backs out from Reliance deal; in talks to buy stakes in retail chain Max
Startups

Amazon backs out from Reliance deal; in talks to buy stakes in retail chain Max

More than a month ago, Amazon, world’s biggest e-commerce marketplace, was reportedly heading conversations with Reliance, to buy 26 per cent stake in the retail subsidiary of the Indian telecom giant. Unfortunately, Amazon has rolled out from the deal due to certain reasons. The e-commerce unicorn Amazon, reportedly, comprehended the deal as a large investment, considering the government’s attempts to formulate stricter FDI norms, cited Inc42.

The move to step-out from the deal was also accelerator by the price range of Reliance’s retail business, which was between INR 2.5 lakh crore to INR 3 lakh crore, making Amazon turning against the deal, as per the sources.

Eventually, Amazon, is now in talks with retail chain Max, which had generated sales of about INR 3,500 Cr in FY2018-19.

The two companies had also entered into a trading arrangement under which Max exclusively sell its products through Amazon’s online marketplace in India.

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 in 1994 by Jeff Bezos.

While, Reliance Industries Limited is owned by Mukesh Ambani and founded by his father Dhirubhai Ambani. It is an Indian multinational conglomerate company headquartered in Mumbai.

Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.

Amit Agarwal, head of Amazon India, said that Amazon will be focusing on the long-term goal, instead of the short-term situation.

He added, “It is actually a symbol of commitment going forward as we grow in India to continue hiring talent to attract great builders for our customers.”

Some of the ace players in the e-commerce industry include FlipkartMyntraJabongAlibabashopclues, and many more.

Reach out to The Indian Wire!

Want to work with us? Looking to share some feedback or suggestion? Have a business opportunity to discuss?

You can reach out to us at [email protected] and we will get back in minutes.

Like us on Facebook!

Shop on Amazon

Advertisement