Amazon Open To Bailing Out Future Group

Amazon Inc is reportedly willing to help its debt-laden partner Future Group in bringing in a strong, stable investor if the latter calls off its Rs 24,700 crore deal with Reliance Retail Ventures Ltd (RRVL).

Amazon which holds 49% stake in Future Coupons, the holding company of the then Kishore Biyani-owned Future Group, helped the latter by bringing in new strategic partners and investors to deal with its ballooning debt crisis.

According to a Mint report, Amazon is willing to help Future Group despite dragging it to the court for alleged violation of a non-compete pact in Future Coupons deal for bringing in RRVL.

The arbitration ruling is expected on or before October 26th. The arbitration ruling will be crucial as it would also decide the fate of Reliance Retail buying out Future Retail.

Amazon’s wish to help Future Group in bringing a strategic investor is borne out of fears that a potential deal Future Group and RRVL will significantly increase the competition for Amazon in India.

Through the deal signed in August with Reliance Retail Ventures Ltd, the Ambani led firm will acquire Future Retail that owns the BigBazaar retail stores which sell everything from groceries to cosmetics and apparel and Future Lifestyle Fashions Ltd that operates fashion discount chain Brand Factory. While Reliance will take over Future Consumer, which sells food, home, and personal care products, Future Group's financial and insurance business is not part of the deal.

It is to be noted that in 2019, Amazon had acquired a 49 per cent stake in Future Coupons for about Rs 1,430 crore, which owns a 7.3 per cent stake in Future Retail. The American online retailer has already approached the Singapore International Arbitration Centre. Amazon said despite being owning a stake in Future Coupons, it was not given the Right of First Refusal (RoFR) in the RRVL-Future Group deal.

Sandip Ginodia , CEO

ALTIUS INVESTECH PVT LTD

We deal in over 60 unlisted companies with 15 years of experience

For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Email : ginodiasandip1@gmail.com

Comments

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

JioMart , Reliance's online-to-offline commerce platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went live in 200 cities across India, is currently processing an average of 500,000 orders per day. " We can go even higher on peak days", Jio Platforms CEO Kiran Thomas revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of kiranas and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials." "Customers are transacting seamlessly on JioMart and the conversational nature of the service enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated th...

Zomato, Swiggy score 1/10 on working conditions for their workers – ET Retail

Some of India's biggest startups have ranked near the bottom when it comes to working conditions for their gig workers , according to a report released Wednesday. While Swiggy , Zomato and Uber India scored 1/10, Urban Company and Flipkart’s logistics arm EKart scored the highest 8/10 and 7/10, respectively, ‘ Fairwork India Ratings 2020: Labour Standards in the Platform Economy’ showed . The report assessed the companies on five principles: fair play, fair conditions, fair contracts, fair management, and fair representation. Deepinder Goyal, chief executive officer of Zomato Media Pvt. Ltd., acknowledged the ratings on Twitter. “Zomato ranked at the bottom of 2020 Fairwork India scores. We knew we had things to work on, but we didn’t know that there is so much room for improvement.” The company takes full responsibility and “will leave no stone unturned to perform better in the rankings next year,” he added. Zomato received a 4/10 in ...

Times Internet posts 24% revenue jump to Rs 1,625 Cr in FY20

Times Internet has posted a 24% jump in its annual revenue in the financial year ending March, recording Rs 1,625 crore in revenue in FY20. In its annual report, the company said the revenue growth has been adjusted for seasonality of cricket events. In FY19, it had posted revenues of $196 million. The company has registered a surge across its revenue streams i.e. advertising revenue, subscribers, transaction revenue and gross merchandise value (GMV) in the last fiscal year. While advertising revenue grew 22% with faster growth in music and video, overall subscribers to Times Prime grew 62%. Times Internet’s annualized GMV in transacting businesses grew 68% with a 75% jump in net revenues, said the company in its annual report. Its subscription and transactional businesses include Times Prime, Gaana Plus, TOI+, ET Prime, and Gourmet Passport. Times Prime also crossed 2 million subscribers last year. “We broadened our media strategy beyond news, and we focused on...

Abhishek Securities

Search This Blog