Amazon in talks to buy 9.9% stake in Reliance Retail: Report

By Reuters

  • 23 Jul 2020
Credit: Reuters

Amazon.com Inc is in talks to buy a 9.9% stake in the retail arm of Indian conglomerate Reliance Industries Ltd, ET Now reported on Thursday, citing sources.

Amazon wants a preferred, strategic stake in Reliance Retail for JioMart, according to tweets by the television channel.

JioMart, the e-commerce venture of Reliance’s retail arm, was launched in May and poses a formidable challenge to Amazon.com’s local unit and Walmart Inc’s Flipkart.

Earlier this year, Amazon India launched a program to add small local shops on its platform after India went into a lockdown to curb the spread of the coronavirus outbreak.

An Amazon spokeswoman through email said the company does not comment on speculation, while Reliance did not immediately respond to a request for comment.

Reliance, controlled by Asia’s richest man, Mukesh Ambani, has raised around $20 billion since late April for its digital arm, including from Alphabet Inc’s Google and Facebook Inc.