The Competition Commission of India (CCI) has approved Amazon’s proposed acquisition of 49% equity stakes in Future Coupons, which is a promoter entity of Future Retail. Amazon will now own 3.58% stake in Future Retail as Future Coupons owns a 7.3% stake in Future Retail. Future Retail operates 900 stores in India, including 293 Big Bazaar stores. The Economic Times first reported this development.

Future Coupons develops corporate gift cards, loyalty cards, and reward cards for corporate and institutional customers. Future retail had said that Amazon’s stake is mainly an investment in the digital payments space. The deal is sized between Rs 1,500-2,000 crore.

Amazon’s retail plans in India

Amazon is expanding Amazon Now, its hyperlocal platform, into newer cities in India through Future Group’s store network. It will also sell Future Group’s FMCG and fashion private brands through its marketplace in India, the ET report said. The two companies may also allow Amazon Prime and Future Pay customers to avail common benefits, the report said. In August, Amazon had launched Amazon Fresh, its two-hour grocery delivery service for select pincodes in Bangalore.

Amazon’s previous collaborations: Amazon had previously collaborated with a private equity firm Samara Capital to buy stake in supermarket chain ‘More’. This deal was also contested in the CCI, but was eventually cleared. Amazon already owns a stake in Indian departmental store Shopper’s Stop.