Amazon Wants To Buy Stake In Housejoy
Amazon is all set to invest $10 million to $15 million in another Indian based startup.
Amazon Inc. is the reigning monarch of America online shopping market. The company, in recent years, has grown immensely and overtook the likes of Wal-Mart and EBay to become the market leader. Furthermore, the online retailer is going through vigorous expansions where it is rolling out its Prime and Prime Now services domestically and internationally. It is also tapping the Internet of Things domain for an early lead in the next big technology thing. Acquisitions and buying stakes have been a normal activity for the company over the years.
According sources report, AMZN is keen about buying a stake in the much hyped Housejoy. It is believed that the parties have already been in advanced talks and is negotiating over a deal. Housejoy is an on demand home services start up founded in 2014. The founders are Arjun Kumar and Sunil Goel who have reportedly in advance talks to be sold a stake to the American e-commerce king, Amazon.
If the deal passes through, it is believed that Housejoy will receive a massive $15 million to $20 million in funding from the online retailer. A source familiar to the matter commented on the deal by saying the firm is in collaboration with several other investors that are likely to constitute a consortium and thus the final size of the round can be bigger although both the parties have not passed any verdict or comments on the matter as of yet.
Amazon is attracted with this sector as well as it has ambitions to expand and diversify its broad portfolio. The Bengaluru based start up is backed a well renowned a popular couple in the entrepreneur world Mr. Krishnan Ganesh and Mrs. Meena Ganesh. Housejoy also has a good support from a firm dealing in venture capital known as Matrix Partners India.
The company officials from both parties have not yet replied to the emails which sought comments from the regarding the deal. A popular Indian newspaper reported. “Such an investment is significant as Amazon and Google have both made an entry into the on-demand home services market in the United States, and it could portend heightened interest in the space in India too. It could mean that home services can join the likes of other hot on-demand sectors such as taxi booking, groceries, food delivery in attracting investor attention.” Amazon is currently competing against Flipkart and Snapdeal in the same region. This is not the first time that the company has backed up a startup in India. In other news, the online retailer expands Amazon Prime Now in Houston.
