Sat. Jul 13th, 2024

Amazon, world’s biggest e-commerce marketplace, is reportedly heading conversations with Reliance, to buy 26 per cent stake in the retail subsidiary of the Indian telecom giant.

While, according to sources, these talks took place after a deal was called off between Chinese e-commerce ruler Alibaba and Reliance over the valuation differences.

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.

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.
“Reliance too is keen in case valuations match. Both sides have realised it is better to collaborate rather than fight,” said a source.

According to the latest company announcement, Reliance Retail has a turnover of over 100K Cr in FY2019 and has more than 10K stores across India.

The company attributed this growth in revenue to be primarily driven by aggressive store addition and spurt in same-store sales.

The company claimed to be growing at a rate of nearly 10 stores per day in the last two years. Reliance Retail is said to have added a total of 2.8K stores to its tally during FY 2018-19.

While, earlier in July, Reliance Retail has started the pilot phase of its new commerce initiative hybrid online-offline commerce. The differentiated business model will provide a technology platform for millions of small merchants across India to strengthen and grow their business, the company said.

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

Also read: Amazon India surpasses five lakh seller base

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