American ecommerce giant Amazon has emerged as the front-runner to buy at least 7-8 percent stake in Kishore Biyani-led Future Retail, sources told CNBC-TV18.

Tech giant Google, Alibaba backed Paytm had also expressed interest in buying stake in the company.

According to the sources, the deal is in its final stages and is likely to be signed over the next two weeks.

However, discussions around valuation are still to be finalised, which will take a final shape closer to the deal signing, said sources.

The industry estimates that the deal could be valued at about Rs 2,500 crore. The flush of funds will give Future Retail ammunition to take on rivals in both, physical and online world. The deal is likely to be done through Amazon's investment arm and the final agreement could also involve some exclusivity clauses. Post the deal, Amazon is likely to set up a microsite for Future Retail brands.

The portfolio of private labels is likely to be on offer via Amazon. Meanwhile, Amazon experience zones could be set up at Future Retail outlets.

Future Group had earlier said that it was not averse to a partnership with global retail giants after speculations emerged of the company exploring a partnership with Amazon.

In a bid to strengthen its presence in the physical space and also to take on Walmart, Amazon has been on an acquisition spree in India. In 2017, Amazon bought 5 percent stake in Shoppers Stop for 180 crore. Recently, Amazon along with private equity firm Samara Capital, bought Aditya Birla Group's retail chain More.

The two companies, however, did not respond to CNBC-TV18's query.

First Published:Oct 16, 2018 11:15 AM IST