E-commerce giant, Amazon reportedly started talks regarding a $2 billion investment in Bharti Airtel, a move which would see it become the latest US giant to invest in India’s technology sector.
Some sources said the talks were at an early stage, but could result in Amazon taking a 5 per cent stake in the Indian operator. It will also give India’s third-largest telecoms company a boost as it seeks to compete against the number one player, Reliance Jio
The reported move comes less than a week after Bharti Telecom, the operator’s holding company, offloaded a 2.75 per cent stake in the business as part of a debt reduction move.
Reuters posits that “A deal with Bharti could help Amazon expand offerings via its smart speakers and also boost its cloud business as access to Bharti’s vast telecom fibre network could help Amazon lower costs. “
Amazon sees India as a strategic growth market as it has committed $6.5 billion in investments mainly toward expanding its e-commerce footprint. Just last month, Amazon started offering online food delivery, under the name Amazon Food, in Bengaluru
Amazon’s apparent interest follows similar moves by US tech giants involving rival operator Reliance Jio: since late April its parent Jio Platforms secured investments totalling $10.46 billion from five US companies, with Microsoft also rumoured to be mulling a $2 billion move and investment funds from UAE this week expressing interest in the business.
Search giant Google is also reportedly seeking a slice of the action, being linked to a potential investment in Vodafone Idea.
