By Jon Russell
Amazon unleashed a flurry of new products this week at a U.S. press event, but halfway across the world, it is getting deeper into physical retail in the Indian market.
The U.S. e-commerce giant is buying up 49 percent of More in a deal that sees Amazon partner and PE firm Samara 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 markets. It did, of course, jumped into offline sales in the U.S. when it gobbled up Whole Foods for some $16 billion last year and this India-based acquisition is similarly strategic.
Source: Tech Crunch