Amazon India is in talks to acquire 20 percent stake in Bangalore-based gift card technology and retail firm QwikCilver Solutions. If the deal goes through, then it will be the first investment in an Indian start-up. Recently Flipkart had also tried to acquire the company but talks have progressed further with Amazon.
QwikCilver was founded in 2008 and is known for providing gift card business to several retailers like Shoppers Stop, PVR, Lifestyle, Van Heusen, Westside and Croma. It plans to reach INR 1,000 crore in overall transactions this fiscal.
The firm also offers gift cards of online players like Flipkart etc. and Amazon has promised to let the team run QwilCilver as a separate business where they can continue to service other clients, said a source in a email query to TOI. iamWire too contacted Amazon regarding this, however got no official confirmation.
Also Read: Amazon to Launch Gift Card Store in India
Earlier this year Amazon had launched its Gift Card store in the country on the lines of its global model. Even then it had used Qwikcilver as a partner to enable the same.
Delighted that our company QwikCilver is selected by the Fantastic team at AMAZON as Partner for the AMAZON Gift Ca…http://t.co/X63X4mfYHR
— QwikCilver Global (@QwikCilver) July 17, 2014
The game between these e-commerce players is becoming all the more competitive with more people are buying online, and veteran shoppers are becoming smarter when a making an online purchase. While some are raising large fundings to grow the business others are investing heavily in marketing activities. Flipkart tried to innovate by tying up with handloom weavers in the country, and its fashion portal Myntra opened a fashion incubator.
However if this acquisition does go through then it will give Amazon a good standing, as shared in a white paper by QwikCilver, the Indian gift card industry is estimated to grow to Rs 9,000 crore by 2016. Amazon will face a challenge to get into the space in India in the form of the requirement of a RBI licence, but as it turns out Qwikcilver already has it, hence this move might give it an upper hand over its peers.