Amazon Acquires Retail Tech Startup Perpule for INR 107.6 Cr
To step up its game in the Kirana-tech space, American e-commerce giant Amazon has acquired Bengaluru-based retail tech startup Perpule for INR 107.6 Cr (about $14.5 Mn).
The overall deal value is secured at INR 150 Cr ($20 Mn) as Amazon is expected to pay additional remuneration to Perpule’s employees as stated by two individuals aware of the discussions. Besides this, the acquisition is expected to give Perpule’s investors — Kalaari Capital, Venture Highway, Prime Venture Partners, and TaxiForSure— an exit with a 4X to 5X return, according to a Mint report, quoting regulatory filings as well as sources within the companies.
Founded by Abhinav Pathak, Saketh BSV, and Yogesh Ghaturle in September 2016, Perpule is a customisable business e-commerce platform that enables small retailers to venture into the digital space. The acquisition will enable Amazon to leverage Perpule’s cloud-based point-of-sale (PoS) offering named UltraPoS, which helps small businesses digitally manage and automate inventory, purchase orders from distributors, and billings. It would also allow Amazon to offer a new suite of technology products to its kirana partners while digitizing neighborhood stores.
Besides this, Perpule also allows its network of 10K store and retail partners to understand customer demographics and purchase patterns. The company has marked its presence across India, South-east Asia, and the UAE as of 2020. Nearly 60% of the product’s customer base are international clients including Matahari Retail in Indonesia and Landmark Group in Malaysia. The company’s co-founders, along with most of the employees, are expected to join Amazon after the deal.
An Amazon India spokesperson verified the acquisition, stating that Perpule’s cloud POS will assist offline stores of all sizes manage their operations better.
“Perpule has built an innovative cloud-based POS offering that enables offline stores in India to better manage their inventory, checkout processes, and overall customer experience. We are excited to have the Perpule team join us to focus on providing growth opportunities for businesses of all sizes in India while raising the bar of the shopping experience for Indian customers,” the spokesperson added.
The acquisition of Perpule comes a year after Amazon launched ‘Smart Stores’ to help offline retailers digitize their inventory and launch a digital storefront on its app. The e-commerce giant has also expanded its ‘Local Shops’ program to 50K offline sellers in March and intends to further grow to 1 Lakh by the end of 2021.
In January 2020, Amazon’s founder and former CEO Jeff Bezos had announced that the e-commerce giant will invest $1 Bn in India to help small and medium-sized businesses (SMBs). He stated that the company would also help the retailers to export goods valuing more than $10 Bn worldwide by 2025.
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