Mukesh Ambani's Reliance to buy Google-backed Indian company

Reliance Industries Ltd. (RIL) has agreed to buy an Indian technology start-up that was funded by Google. This will lead to rise in an inventory-management platform and add to the list of smaller deals that the conglomerate has built to take on Amazon.com Inc.

According to a statement by the company dated August 2, Mukesh Ambani’s group has agreed on to buy a controlling stake in Shopsense Retail Technologies Pvt, that operates the Fynd platform. The investment unit of Reliance will invest as much as Rs 2.95 billion (US$ 42 million) in cash, with an option to add a further of Rs 1 billion. As the investment will be completed by December 2021, the total investment would convert to an 87.6 per cent stake.

Reliance is focusing on consumer businesses and mobile phone services as its growth areas.

Thus, the investment in Fynd platform is to grow in the area for energy-to-retail conglomerate. The plan is to transform itself from a grocery and neighbourhood store-based empire to an online powerhouse as India becomes a battleground for giants such as Amazon.com Inc. and Walmart Inc.’s Flipkart Online Services Pvt.

Shopsense, started out as an online fashion portal, has attracted investments from Alphabet Inc.’s Google, among others over period, and has shifted its focus on helping stores boost sales by managing inventory. According to RIL, Ambani said that the key to his e-commerce push will be authorising mom-and-pop retailers with technology to enhance their sales and better serve customers.

This deal is expected to be completed by December 2021 and will allow the group’s digital and new commerce programs, according to the statement. This transaction doesn’t need any regulatory approval.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.