Economy

Amazon to invest Rs 179 cr in Shoppers Stop

Amazon to invest Rs 179 cr in Shoppers Stop”

Industry executives and analysts said the move signals Amazon's strategy to push its fashion and lifestyle business along with giving it a key supply chain asset and presence across 80 Shoppers Stop stores.

Shoppers Stop one of the biggest retail shops in India said Amazon.com NV Investment Holdings LLC will invest Rupees 179.25 crore in the company.

Shoppers Stop's board has approved issuance of 43.95 lakh equity shares, which is 5% of its capital, of Rs 5 each at price of Rs 407.78 per share to Amazon.com NV Investment Holdings for Rs 179.25 crore on preferential basis in a meeting held on Saturday, Shoppers Stop said in a Bombay Stock Exchange filing. As on quarter ended June 30, Shoppers Stops fully paid up equity shares were at 8,35,04,744, according to information available on BSE. Amazon.com NV Investment Holdings is a limited liability company incorporated in United States and registered as category III Foreign Portfolio Investor with SEBI in India.This preferential issue is subject to approval from the shareholders of the company and such other regulatory and statutory approvals, the statement said.

Jeff Bezos, the founder & CEO of Amazon, has made his first investment in an Indian brick-and- mortar retailer at a time the e-commerce behemoth has aggressively started building its physical footprint globally. This segment of the market is underpenetrated and highly unorganized. The company said it will be selling its entire portfolio of over 400 products across apparel, footwear, and other categories on Amazon.in website. This values Shoppers Stop at roughly Rs 3,600 crore ($555.55 million). "There is now no proposal to increase their stake and Amazon as a retailer is not involved", said Govind Shrinkhande, MD at Shoppers Stop.

Last week, Shoppers Stop said it had entered into an exclusive partnership with Amazon Seller Services, as part of which it would have a flagship store on the Amazon marketplace.

This partnership will leverage Shoppers Stops brand assortment and Amazon.reach to create a superlative omni- channel retail experience for consumers across the country.

The partnership will bring 50 new fashion brands to Amazon's platform, the company's fashion category head Arun Sirdeshmukh had said, while the e-tailer can also use Shopper Stop's four major warehouses in the four regions of the country to provide faster delivery for the 500 brands. The two companies will also conduct joint marketing efforts and mutually beneficial marketing and promotion activities, it added.



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