Deals with Premjis, Amazon to help Biyani grow business, unlock value

Future Group is reportedly in talks with PremjiInvest for a $250 mn infusion in its flagship, and also seeks to sell 10% stake to Amazon

The new fund raising plans of Future group chief Kishore Biyani, aimed to help him grow his businesses, come on the heels of the Walmart-Flipkart deal that gives the American retail giant an entry into Indian e-commerce space.

Biyani's fund raising initiative could also help him monetise his investments in different Ventures, experts said. 

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PremjiInvest, the family office of Wipro chairman Azim Premji, is reportedly in talks with Future group to invest $250 million in the latter's flagship company.

Future is also in talks with Amazon to sell 10 per cent stake, reports said.

"Future group is well placed to get interest of investors, whether financial or strategic investors like Amazon," said Arvind Singhal, chairman of Technopak Advisors, adding that the funds pumped in could to Biyani's consumer products business. 

Kishore Biyani could not be contacted for comments.

The investment arm of Amazon also picked up five per cent stake in Shoppers Stop. 

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Sanjay Badhe, an independent retail analyst, said the Premji deal would bring a great deal of respectability to the Future group.

"Premji must be investing in brands of Future Group for its huge line up of brands," Badhe said. 

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PremjiInvest sold four per cent in Future Lifestyle Fashion to PE firm L Catterton. 

Future Retail is the group’s retail arm, Future Consumer houses the FMCG vertical, while Future Lifestyle Fashions sells the fashion brands. The parent entity of the group is Future Corporate Resources. The retail group operates 2,500 stores across various formats and brands like Big Bazaar, Easyday, Brand Factory and HyperCity, among others.