Looks like Reliance Industries's fund-raising spree is far from over. After raising more than Rs 1.52 lakh crore since April from leading global investors, including the likes of Google, Facebook, KKR, Qualcomm, Silver Lakes and General Atlantic Singapore, the Mukesh Ambani-led oil-to-telecom conglomerate is now in talks with Jeff Bezos's Amazon for a multi-billion dollar deal, reports ET Now.
According to the report, Reliance Retail is in talks with Amazon to be an investor and take a 9.9 per cent stake. The report added that Reliance Retail may get Amazon as its strategic investor.
In April, Facebook had bought a 9.9 per cent stake in RIL's Jio Platforms for $5.7 billion. A deal with the global online retail giant will further push RIL's valuation.
It is to be noted that Reliance is in talks with Kishore Biyani-led Future Retail, in which Amazon is an investor, for an acquisition. Amazon acquired 49 per cent stake in Future Coupons, a promoter group entity, last year. Then in January 2020, Amazon and Future Group entered a partnership that would allow the latter access to Amazon's e-commerce platform.
It was widely expected that Amazon would raise its investment in Future Retail, which is struggling due to high debts and COVID-induced revenue hit, before RIL emerged as the front-runner, more so after the recent fund raises.
It is expected that Biyani will give up control over all businesses under the Future Retail basket, including Big Bazaar, FBB, Food Hall and Central to Reliance Retail as part of the deal. Future Supply Chain Solutions and Future Lifestyle Fashion Ltd will also be sold to Reliance Industries. Biyani will be left with only Future Group’s FMCG business and some of the other smaller group entities.
At the same time, Amazon needs to give an NOC for the Reliance-Future deal to go through.
