Reliance Retail is in Amazon’s sights and could soon count the ecommerce giant as a major investor.
India’s biggest retailer is in talks with Amazon over the potential sale of a 26 per cent stake according to India’s Economic Times, although sources said its unclear whether a deal would materialise at this early stage.
Amazon is understood to have been eyeing the bricks-and-mortar retailer since February, but was encouraged to make an approach after talks between Reliance and Alibaba fell through.
Should the deal go ahead, Amazon will have access to 10,600 stores across India as well as access to the Jio telecoms platform.
India’s online retail market is predicted to be worth $72 billion by 2022, and Amazon will be keen to try and secure its piece of the pie.
This comes after India modified its rules around foreign direct investment in ecommerce in December, encouraging numerous big names to invest.
Last month Ebay was revealed to have invested between $150 million and $200 million in the Indian ecommerce marketplace Paytm Mall which is now valued at $3 billion.
Walmart has also invested a whopping $16 billion into India’s Flipkart over the last year, as it too tries to cash in on the emerging market.