The Ambani-Bezos connection makes sense!

The Modi govt revamped FDI policies for e-comm because it wanted to protect and promote local players and while that hurt the 2 American giants that dominate the game in India, one of them is trying to make the most of it. 

What’s the deal yo?

Multiple reports confirmed that Amazon is hoping to acquire a 26% stake (the max % allowed under new norms) in Reliance’s retail business, which is the biggest retailer in the country with an annual revenue that exceeds ₹1 lakh crore and a network of more than 10,000 stores

While Reliance has been patient in its approach, the Ambani family have expressed their desire to launch a digital platform on several occasions as they hope to capitalize on the huge base of 33 crore Jio users that they have acquired over the last 5 years. 

Surprisingly, China’s Alibaba explored this venture before Amazon, but talks fell through as there were disagreements over valuation figures. Reliance is keen on cutting its debt and this may be the perfect opportunity for them.

A force to be reckoned with

Amazon’s expertise in global logistics and deployment of technologies combined with Ambani’s local connect and network of offline stores may result in the formation of a force that no other e-comm company may reckon with

Reliance’s Retail business is mighty 🤯

Future group (owner of Big Bazaar), that is India’s 2nd biggest retailer falls far below Reliance – a revenue of ₹ 35,000 crores and a store count of 2,200 stores. We won’t even talk about Amazon (India) & Flipkart’s numbers because they bleed more money than they earn and generate only one-fourth of the revenue that Reliance generates annually.

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