The deal will enhance Amazon’s existing portfolio of investments in the payments space in India
After almost a year of negotiations, global e-commerce and technology giant Amazon.
com is acquiring a 49 per cent stake in Future Coupons, the promoter entity of Future Retail. According to sources in the know, the size of the deal is between Rs 1,500 crore and Rs 2,000 crore.
Through this transaction, Amazon
has managed to acquire around a 3.6 per cent stake in the Future group.
"We have been informed by Kishore Biyani
on behalf of the existing shareholders forming part of the promoter group and Future Coupons Limited (promoters) that they have entered into a share subscription agreement and a shareholders’ agreement with Amazon.
com NV Investment Holdings LLC (Amazon)," Future Retail said in a BSE filing on Thursday evening.
Pursuant to these agreements, Amazon has agreed to make an equity investment in Future Coupons for acquiring a 49 per cent stake comprising both voting and non-voting shares. "Amazon has agreed to invest in Future Coupons, which is engaged in developing innovative value-added payment products and solutions such as corporate gift cards, loyalty cards, and reward cards primarily for corporate and institutional customers. This investment will enhance Amazon’s existing portfolio of investments in the payments landscape in India," a spokesperson for Amazon said in a response to a query.
Future Retail on its part maintains that Amazon’s stake buy is mainly an investment into the digital payments space. "This investment reflects our commitment to innovating for Indian customers and offer best-in-class shopping experience. This investment provides an opportunity for us to learn global trends in digital payments solutions and launch new products," its spokesperson said.