Search engine major Google is likely to collaborate with Paytm Mall to invest around Rs 3,500-4,000 crore for a 7-10 percent stake in Future Retail Ltd (FRL), according to a report in The Economic Times.
The aim behind the decision could be to combat intense competition with super-rich online and offline retailers like Reliance Retail, Amazon and Walmart, which are looking to encash country’s growing inclination towards digital economy. India is expected to turn $1 trillion digital economy by 2025.
In the race to acquire stakes in FRL, the Google-Paytm consortium will face strong competition from the online marketplace giant Amazon. The world’s largest online retailer reportedly submitted a term sheet to pick up a similar stake in FRL recently.
Earlier, in an interview with the publication, Biyani confirmed his intentions of stake sale. “Ultimately, it’s all about how formidable we all are. As players get bigger, you need alliances,” Biyani had told ET. He further added, “We can’t sell more than 10% and foreign portfolio investor (FPI) is the only route available.”
The development was reported by moneycontrol.com