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Amazon Affiliate To Buy $27.6 Million Stake In Retailer Shoppers Stop

24 September 2017

An affiliate of Amazon.com has agreed to buy a 1.79 billion-rupee (Dh101.1 million million) stake in the Indian retailer Shoppers Stop, the Indian company said in a filing.

The company said it has called for an ordinary general meeting on October 18, 2017 for seeking approval from its shareholders.

The e-tailor's Investment Holdings firm is incorporated in the U.S. and registered as category III Foreign Portfolio Investor with the Indian regulator Securities and Exchange Board of India (SEBI).

Amazon confirmed to Gadgets 360 that its investment arm has proposed to make the investment in Shoppers Stop, with a spokesperson adding that the company believes the fashion retail market in the country is "under penetrated and highly unorganised".

"The preferential issue is subject to approval from the company's shareholders and other regulatory and statutory approvals", added the filing. "We see a big potential in Shoppers Stop to disrupt this segment and want to be part of their growth story".

"Shoppers Stop is a leading fashion retailer in India".

The Amazon affiliate will not take a board position, Shoppers Stop, which operates large department stores and other retail outlets, said in the filing.

Earlier this week Shoppers Stop had entered into a commercial arrangement with Amazon India to sell its products on the latter's marketplace.

The two companies have an existing partnership since 2016 under which Shoppers Stops private and exclusive brands (Stop, Kashish, Haute Curry, RS by Rocky Star, ) have been listed on the Amazon marketplace.

Also, their chain will have a flagship store on Amazon.in to list its entire portfolio which will leverage Shoppers Stop's brand assortment and Amazon.in's reach for an omni-channel presence, reported the Economic Times.

Shoppers Stop will use the funds to continue its investments in expanding physical and online retail businesses, said managing director Govind Shrikhande.

"These will be for customers to touch and feel Amazon's exclusive brands, mainly for fashion and accessories".

Shoppers Stop has 80 retail stores across the country.

Amazon Affiliate To Buy $27.6 Million Stake In Retailer Shoppers Stop