Citing people familiar with the deal, Bloomberg reported that Future Retail's parent company, Future Group, was seeking a valuation of about 20 billion rupees ($281 million) from Amazon for the stake. The retail group operates more than 900 stores in India and owns nine supermarket brands, including Big Bazaar.
Representatives from the companies declined to comment.
Seattle-based Amazon dived into the American grocery business with its 2017 purchase of high-end Whole Foods Market for $13.7 billion. The world's largest online retailer has slowly been building up small stakes in Indian brick-and-mortar companies, like Indian retailer Shoppers Stop Ltd. in 2017 and a grocery chain from the Aditya Birla Group in 2018. Reuters reported earlier this month that Amazon was also in talks with Reliance Industries Ltd.'s retail unit to buy a stake in India's biggest brick-and-mortar retailer.
If completed, the Future Group deal would help Amazon tap into the increasing demand for household items as well as home-delivered vegetables and produce.
Amazon shares were up 2% to $1,820.67 in trading Tuesday.