Companies

Amazon deal not just for funds; it’s to share payment ecosystem: Biyani

PTI Mumbai | Updated on August 27, 2019 Published on August 27, 2019

Kishore Biyani, CEO and founder of Future Group   -  REUTERS

Future Group forged a deal with global e-commerce giant Amazon not just to raise money but also to become a part of the payment ecosystem, according to Kishore Biyani, founder of Future Group.

The company recently announced that Amazon is picking up a 49 per cent stake in Future Coupons, the promoter entity of Future Retail, with an option to acquire the entire stake later. Future Coupons currently does not own a stake in Future Retail but recently subscribed to convertible warrants for ₹2,000 crore.

Strategic deal

“We had subscription warrants of our company and we had to raise money, so the deal was struck. Moreover, the investment by Amazon is strategic to become a part of the (payment) ecosystem,” Biyani said here late Monday evening. He said the deal is aimed at enhancing the payments portfolio of both the companies.

“We have a database of eight billion transactions and 55 million customers. Payments is one platform where we can acquire the customer base.

“And if the customer starts using your payment mechanism then loyalty increases. So it’s about getting into the ecosystem,” Biyani said.

Food distribution centres

He also said the company has embarked on a ₹1,000-crore investment plan to create distribution centres for its food-on-demand venture.

The group’s supply chain company, Future Supply Solutions, plans to set up about 38 such centres. Named India Food Grid, the project will connect the entire country through a single, multi-layer network.

Published on August 27, 2019
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