The government approval means the retail giant can stock itself and sell groceries via partners, according to multiple news sources.
Seattle-based E-commerce giant Amazon has been approved to stock and sell groceries in India, the home of rival company Flipkart, according to reports from multiple news sources.
Amazon decline to provide further details aside from confirming winning government approval to sell food products. However, a source familiar with the matter said Amazon planned to invest $500 million, over and above the $5 billion already committed to investing in India, writes Reuters.
While mom-and-pop stores account for the largest share of grocery sales, internet and smartphone proliferation in the country have led to a surge in online shopping, said Reuters. Amazon currently offers food products in India via Amazon Pantry and same-day grocery delivery on its Amazon Now app through Indian retailers and Amazon’s joint venture Cloudtail.
Flipkart executives have said the company will also move into the grocery sector and has backers including Tiger Global, Tencent Holdings and Microsoft.
Amazon’s approval follows last month’s purchase of U.S. grocery chain Whole Foods Market for $13.7 billion, the largest deal ever for the e-commerce company.
Amazon wins approval to sell groceries in India
