Another giant ecommerce player may enter Indian market.
Investment of at least US$5 bn from Alibaba
Talks have begun between Alibaba and Reliance Retail about the possibility of creating a mega retail joint venture. Jack Ma, Alibaba’s executive chairman and Mukesh Ambani, Reliance Industries Ltd. chairman met recently to discuss plans to create an omnichannel retail entity.
If it proceeds, the joint venture aims to challenge the Walmart-Flipkart alliance as well as Amazon India in one of the largest economy in the world.
For Alibaba, the partnership is a way to expand its physical retail business while Reliance Retail will benefit from the digital marketplace expertise of its partner.
Although Alibaba currently has a 49% stake in Paytm, an Indian digital payments platform, its efforts to make further inroads into India were hampered by recent legislation. On 1st August, the Reserve Bank of India instructed Paytm to stop recruiting new customers, following concerns raised about its enrolment process.
More about Reliance Retail
Reliance Retail is one of the largest retailers in India and operates neighbourhood stores, supermarkets, hypermarkets, wholesale cash and carry stores, specialty stores and online stores. It operates under the banner of Reliance Fresh, Reliance Smart, and Reliance Market.
More information about Reliance Retail can also be found here.
Retail Analysis Asia