An affiliate of Amazon.com has agreed to buy a Rs 1.79 billion stake in Indian retailer Shoppers Stop Ltd, the Indian company said in a filing.
The issuance of shares to Amazon.com NV Investment Holdings LLC is subject regulatory and shareholders' approvals.
Following the decision, the company will now hold an extraordinary general meeting (EGM) of its shareholders to seek their approval for this deal.
It's the first time Amazon has invested in an offline fashion retail in India.
Ltd. (ASSPL) have entered into an exclusive partnership for the department store format whereby Shoppers Stop will have an exclusive flagship store on the Amazon marketplace where it will list its entire portfolio of over 400 brands across categories such as apparel, footwear, beauty and accessories. "There is now no proposal to increase their stake and Amazon as a retailer is not involved", said Govind Shrinkhande, MD at Shoppers Stop.
Commenting on the partnership, Shoppers Stop Customer Care Associate & MD Govind Shrikhande said: "Overall, this alliance with Amazon.in will give a significant fillip to the growth of our omni-channel business".
Besides conducting joint marketing efforts and promotion activities, Amazon experience centres will be set up in 80 Shoppers Stop stores across the country to bring in the touch and feel aspect on Amazon.in's assortment.
Arun Sirdeshmukh had said the collaboration will enable the two partners to draw upon each other's strengths to serve the evolving customer base in India.
The partnership will also enable Amazon.in to extend its leadership in the fashion category and offer customers across the country guaranteed delivery on new products and brands. Shoppers Stop also owns HyperCity grocery chain and CrossWord Bookstores. 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.