E-commerce giant Amazon and Kishore Biyani's Future Retail are nearing a deal in which Amazon.com will pick up 10 per cent shares in the latter. Future Retail operates its flagship Big Bazaar grocery chain which may join forces with Amazon in case the deal is sealed. This will be advantageous to Amazon as it is looking to solidify its presence in brick and mortar shops in India which is one of the fastest growing retail markets of the world.
The deal will Future Retail will help Amazon compete with Flipkart which is now owned by America's biggest retail store chain Walmart. Talks between Amazon and Future Retail had been going on during last few months but the pace slowed somewhat after Indian government tightened FDI norms for e-commerce marketplaces a few months ago.
News agency Reuters said the Amazon representative declined to comment on "what may or may not happen".
However, talks between both the companies, Amazon and Future Retail are reported to be in advanced stages.
Future Group is seeking a valuation of about Rs 20 billion for a 10 per cent stake from Amazon.
If the deal goes through, it will add interesting new contours to Indian e-commerce and retail marketplace.