Amazon to buy 9.5% stake in Future Retail

Amazon is set to acquire a minority stake in Future Retail next week, potentially giving the e-commerce platform access to nearly a third of the country's organised food and grocery market through the Big Bazaar and Nilgiris supermarket chains and other outlets. The deal by Amazon's investment arm is pegged at about Rs 2,500 crore ($342 million). Future Retail has more than 1,100 physical stores across India. Amazon, through the foreign portfolio investor (FPI) route, will buy about 9.5 per cent stake in Future Retail and has already signed a term sheet. Amazon has pledged to spend $5 billion in India and, having also received government approval for its proposed $500 million entry into the food sector, is ramping up its Amazon Pantry and Amazon Now initiatives.