- Amazon wants a preferred, strategic stake in Reliance Retail for JioMart (e-Commerce).
- Amazon in talks to buy strategic 9.9% stakes in billionaire Mukesh Ambani's Reliance Retail for JioMart.
- JioMart, the e-commerce company of Reliance's retail arm, was launched in May.
Amazon Inc. is reportedly in talks with Mukesh Ambani's multinational conglomerate company Reliance Industries Ltd. to buy 9.9% strategic and preferred stakes for JioMart.
Mukesh Ambani firm Reliance Industries Ltd. the most valuable company in India with a market capitalization of over Rs14.12 trillion (14 lakh crore+) making it the first Indian company to cross 10 lakh crore+ valuation. Reliance is constantly looking to bring most of its business services online accessible.
Furthermore, Launching of the JioMart has brought more competition for Amazon, Flipkart, and other operating e-commerce platforms in India.
Additionally running an e-commerce business requires lots of investment (recurring investment) and funds to operate on a large scale without any market price interruption. And we all know those who have lots of investment, fundings and a good business model make successes in this and Reliance Industries having all that requirement fulfilled. Therefore, This can be a challenging part for Amazon Inc and other e-commerce companies.
Though Amazon is not a small company and lots of investment and funds to operate globally without any market price interruption. That's why they are still one of the largest e-commerce companies in the world. but in India, they are facing too much competition because of its platform alternatives like newly launched JioMart and for this are using a strategic approach against JioMart.
Reliance JioMart is working on an O2O (Online to Offline) model that focuses on connecting all the small businesses and retailers in JioMart and bring them online. Because online is having the big opportunity to grow any business, said, Reliance chairman, Mukesh Ambani.
According to the sources, Reliance got more than Rs1 lakh crore investment from marquees investors, and foreign companies, most of the investment is done on JioPlatforms.
Companies and investors from which Reliance Industries got investment:
- Facebook Inc.
- Alphabet (Google)
- Silver Lake Partners
- Vista Equity Partners
- General Atlantic
- PIF (Public Investment Fund of Saudi Arabia)
- Qualcomm Ventures
- L Catterton
- TPG Capital
Earlier this year Amazon India launched a program for local Indian shops and small businesses to let them sell their products on Amazon.in across the country in the wake of the COVID-19 lockdown.
Amazon is not currently looking to compete with the Indian giant Reliance Industries Ltd. e-commerce platform JioMart. If their strategic approach goes well it will help Amazon to expand its services in many more cities in India