Aditya Birla Retail (ABRL) signed a deal with home-grown private equity fund Samara Capital and global e-commerce giant Amazon.
Reportedly, the deal is cracked for a sum of Rs.42 billio, though, the exact amount is not disclosed by the officials yet.
Almost 11 years after setting up the food and grocery retail business, the Birlas are likely to end up with losses worth Rs.70 billion in the venture, given that they had invested Rs.110 billion of personal capital through both equity and debt.
ABRL took at least Rs.10 billion debt from several unlisted group companies and to pay off the debt, the company has agreed to sign the deal with Samara Capital and Amazon.
ABRL’s accumulated losses have risen further in the year ended March 2018 which earlier already crossed Rs.67 billion in 2016-17.
This is the Amazon’s second direct investment deal in brick-and-mortar retail space in India after it acquired 5% stake in department store chain Shoppers Stop for about Rs.180 crore in September, 2017.