Info-tech

Reliance to buy Google-backed tech start-up Shopsense Retail

Bloomberg Tokyo | Updated on August 05, 2019 Published on August 05, 2019

Reliance agreed to buy a controlling stake in Shopsense Retail, which operates the Fynd platform.   -  sorbetto

Reliance Industries agreed to buy a stake Shopsense Retail Technologies Pvt, technology start-up funded by Google, scooping up an inventory-management platform and adding to the list of smaller deals the conglomerate has assembled to take on Amazon.

The Mukesh Ambani’s group agreed to buy a controlling stake in Shopsense Retail, which operates the Fynd platform, according to a statement dated August 2. The investment unit of Reliance will pay as much as ₹2.95 billion in cash, with an option to plow in a further ₹1 billion. Once completed by December 2021, the total investment would translate to an 87.6 per cent stake, the company said.

Reliance is adding Fynd as part of its focus on consumer businesses and mobile phone services as growth areas for the sprawling energy-to-retail conglomerate. India’s largest retailer has said it intends 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 Inc. and Walmart’s Flipkart Online Services Pvt.

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

The deal for Fynd will enable the groups digital and new commerce initiatives, according to the statement. The transaction doesn’t require regulatory approval, the company said. Fynd, which was incorporated about seven years ago, had a ₹186.4 million net loss in fiscal 2018 on sales of ₹48.4 million, according to the statement.

Published on August 05, 2019
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