Reliance Retail, India’s biggest retail chain, has found a much simpler way to expand its dominant position in the country: Obtain the majority of the second largest chain’s systems. On Saturday evening(local Indian time), Dependence Retail stated it has reached an agreement with Future Group to acquire the latter’s retail and wholesaler company, and its logistics and warehousing organisation for$ 3.4 billion. The statement today further makes complex the future of Amazon and Walmart’s Flipkart in India where e-commerce sill represent just 3%of all retail sales. Amazon, which was also in talk with get stakes in Future Group, in 2015 purchased a tiny portion of Future Group’s business. In January this year, the American e-commerce company stated it had also inked a deal with Future Group to assist the Indian company sell online. Mukesh Ambani, who manages Reliance Industries (of which Reliance Retail is a subsidiary), has secured about$20 billion from Facebook, Google , and 11 other prominent investors for his telecom venture Jio Platforms this year. Now
Ambani, who is India’s richest male, has actually set his eyes on e-commerce. Jio Platforms and Dependence Retail in 2015 announced JioMart. The e-commerce venture, which started test trials in select suburbs of Mumbai late last year, has actually expanded to more than 200
towns and cities across India. “With this transaction, we are pleased to supply a home to the distinguished formats and brand names of Future Group along with protect its business environment, which have played an important function in the evolution of modern-day retail in India. We wish to continue the development momentum of the retail market with our unique model of active collaboration with small merchants and kiranas as well as big customer brands. We are committed to continue offering value to our customers throughout the country,”stated Isha Ambani, Director at Reliance Retail, in a statement. This is a developing story. More to follow … Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.