Amazon in talks to buy stake in Future Retail’s Future Coupons

By

Isabelle Crossley

Published
Feb 27, 2019

Amazon is in talks to buy a stake in Future Retail’s promoter Kishore Biyani’s business Future Coupons. The move would help Amazon to work with the new foreign direct investment (FDI) norms and could lead to a further deal in future.

Amazon India is currently in talks with Future Retail to buy a stake in its business Future Coupons, sources told ET Bureau. Amazon India was previously in talks discussing a possible stake acquisition in Future Retail itself and so an acquisition of Future Coupons could lead to another deal with Future Retail at a later date. In early February, Future Retail had announced that it was raising Rs 2,000 crore ($300.6 million) by issuing warrants on a preferential basis from Future Coupons. 

“This was done primarily to raise funds from Amazon in the promoter group company, which will give it 8% stake in Future Retail through a combination of equity and debt instruments, and adhere to the government’s new rule,” a source told ET Bureau about the move. 

Although neither Amazon India nor Future Retail have confirmed this development, a source told ET Bureau, “The talks with Amazon are in the final stages and could be announced next month.”