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In­dia | In­ter­na­tional

Shoes & Accessories - - Contents -

As it ex­pands its pres­ence in In­dia and eyes the bricks-and-mor­tar mar­ket, Ama­zon’s in­vest­ment arm has ac­quired a 5 per­cent stake in Mum­bai-head­quar­tered fash­ion re­tailer Shoppers Stop.

Shoppers Stop said that its board of di­rec­tors has ap­proved an ar­range­ment with Ama­ NV In­vest­ments Hold­ings LLC. As part of which the fash­ion re­tail com­pany will raise `. 179.26 crore from Ama­’s sub­sidiary and is­sue a five per­cent eq­uity share to the e-com­merce gi­ant’s sub­sidiary in ex­change.

The board, Shoppers Stop said in a fil­ing on In­dian stock ex­change BSE, has also pro­posed to hold an ex­tra­or­di­nary gen­eral meet­ing of the com­pany on Oc­to­ber 18, 2017 to seek approval of the share­hold­ers. Ama­zon. com NV In­vest­ment Hold­ings LLC is a lim­ited li­a­bil­ity com­pany in­cor­po­rated in the US, and reg­is­tered as cat­e­gory III For­eign Port­fo­lio In­vestor with SEBI in In­dia.

Ama­zon’s spokesper­son said that the com­pany be­lieves the fash­ion re­tail mar­ket in the coun­try is “un­der-pen­e­trated and highly un­or­gan­ised. We see a big po­ten­tial in Shoppers Stop to dis­rupt this seg­ment and want to be part of their growth story.” It’s the first time Ama­zon has in­vested in an off­line fash­ion re­tail in In­dia. The move comes on the heels of ri­val Flip­kart rais­ing a war chest from Ja­pan’s Softbank. Flip­kart owns fash­ion e-com­merce com­pa­nies Myn­tra and Jabong. The move came two years af­ter Shoppers Stop had en­tered into a sim­i­lar agree­ment with Shoppers Stop has 80 re­tail stores across the coun­try. The com­pany has an on­line store of its own, but it is strug­gling to make a dent in the on­line space. Shoppers Stop also owns Hyper­city gro­cery chain and Crossword Book­stores.

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