Amazon enters India’s retail sector with investment in More

Amazon enters India’s retail sector with investment in More

Amazon alongside an Indian private equity firm Samara Capital have invested  in Indian supermarket chain More.

The investment is Witzig Advisory Services, which is owned by Samara Alternative Investment Fund, Amazon said without divulging financial details or the size of its stake.

Witzig is in the process of acquiring Aditya Birla Retail, which runs over 540 More stores across India, according to a stock exchange filing.

The U.S. tech company would effectively own a stake in More’s supermarkets and hypermarkets, intensifying competition with rival Walmart (WMT.N), which acquired Indian online marketplace Flipkart this year.

Amazon and Samara Capital have agreed to co-invest in Witzig, a spokeswoman for Amazon said in an emailed statement.

“Through this investment, Amazon looks to enhance its services portfolio and meaningfully invest in and create opportunities for skill development and job creation.”

Amazon entered India in 2013 and it expects groceries and household products to account for more than half of its business in India in the next five years, its country head told Reuters in an interview earlier this year.

This move will give Amazon access to the world’s second most populous country with a huge retail industry that is having serious competition from eCommerce and global retail giants.