Amazon and Narayana Murthy's firm to help small businesses get online

Fri Jun 27, 2014 7:28pm IST

N.R. Narayana Murthy, Chairman Emeritus of Infosys, speaks during an interview with Reuters in Bangalore, February 28, 2012. REUTERS/Vivek Prakash/Files

N.R. Narayana Murthy, Chairman Emeritus of Infosys, speaks during an interview with Reuters in Bangalore, February 28, 2012.

Credit: Reuters/Vivek Prakash/Files

Stocks

   
Coal Mining In The Punjab

Coal Mining In The Punjab

In Choa Saidan Shah miners dig coal with crude pick axes and load it onto donkeys to be transported to the surface earning a team of 4 workers around $10 to be split between them.  Slideshow 

REUTERS - Amazon.com Inc's (AMZN.O) Asia unit will provide back-end support in a venture with an Indian private investment firm formed by Infosys Ltd (INFY.NS) co-founder N.R. Narayana Murthy that aims to help get Indian companies online.

Catamaran Ventures's partnership with Amazon Asia will target small- and medium-sized firms, Arjun Ramegowda Narayanswamy, who heads the private investment company, said in an email to Reuters on Friday.

Access to mobile devices and better-quality broadband has boosted India's online shopping scene, where Amazon is jostling with home-grown companies like Flipkart and Snapdeal for market share.

An official from Amazon's India unit, who did not want to be identified as details of the deal are not public, told Reuters Amazon will support the venture with logistics and technology know-how. He declined to give details.

Online sales of retail goods totaled $2 billion in 2013, according to research firm Forrester. Technopak forecasts sales are expected to reach $76 billion by 2021.

The venture, which is already operational, is expected to help offline sellers and small and medium businesses in India to supply to a fast-growing set of online customers in the country, he said.

Industry surveys say e-commerce could contribute up to 4 percent to India's economy by 2020 from less than 1 percent now.

India's Economic Times newspaper first reported the partnership on Thursday.

Catamaran will hold a majority stake in the new company, said Taurus Business And Trade Services Pvt Ltd, the legal name for the partnership that is yet to be branded. Amazon will own the rest as required under India's foreign direct investment rules, the newspaper reported, citing sources.

A unit of the holding company, likely to be wholly owned by Catamaran to comply with local regulations, will roll out the business, retail consultants said.

An Amazon India spokeswoman declined to comment, while Amazon Asia did not immediately respond to a Reuters query.

(Reporting by Nandita Bose and Nivedita Bhattacharjee in Mumbai and Abhirup Roy in Bangalore; Editing by Ryan Woo and David Holmes)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

HCL Tech Results

HCL Tech Results

Q4 dollar revenue disappoints investors, shares fall  Full Article 

Fed Policy

Fed Policy

Fed presses forward with bond buying, cites uptick in inflation.  Full Article 

Q2 Profit Slips

Q2 Profit Slips

Samsung sees tough second half  Full Article 

Chinese Economy

Chinese Economy

China should set lower 2015 GDP growth target of 6.5-7 percent - IMF  Full Article 

Default Imminent

Default Imminent

Argentina fails to reach debt agreement   Full Article 

Economy Reboots

Economy Reboots

U.S. economy back on track with strong second-quarter rebound  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage