INSUBCONTINENT EXCLUSIVE:
Amazon unleashed a flurry of new products this week at a United States press event, but halfway across the world, it is getting deeper into
physical retail in the Indian market.
The United States e-commerce giant is buying up 49 percent of More in a deal that sees Amazon
partner and PE firmSamara Capital pick up the remaining 51 percent
Amazon and Samara have created an entity called Witzig Advisory Services Private Limited which will hold the ownership stake through the
deal, which is reportedly worth around $585 million according to Indian media
Regulation prevents Amazon from owning the business entirely, hence it requires a local partner to take a majority stake.
The deal is
significant because it represents a major move for Amazon in brick and mortar retail in India, which is one of the up-and-coming global
It did, of course, jumped into offline sales in the United States when it gobbled up Whole Foods for some $16 billion last yearand this
India-based acquisition is similarly strategic.
Amazon is battling Flipkart for dominance in India e-commerce market, which is tipped to
grow four-fold to reach $150 billion by 2022, according to a recent report from PWC
The India rival got a huge boost when it was bought by Walmart, Amazon chief rival in the U.S, in a $17 billion deal earlier this
year.
Thatacquisition got Walmart into India e-commerce space and it also presents an opportunityto go further and move into other emerging
markets using Flipkart tech and experience, which is something that Walmart has said it is keen to explore.
Now, this More deal gives Amazon
a strong position in Walmart core business — to date, Amazon operates a limited number of fulfilment centers in India
It also comes hot on the heels of another investment which saw Amazon take control of fintech startup Tapzoin a move that boosts its own
payment service in India.
Walmart confirms $16B Flipkart investment, giving it 77% in India e-commerce leader
