Quess Corp, a provider of logistical, staffing and infrastructural solutions to businesses in India, said it has entered into an agreement with international e-commerce giant Amazon.com relating to investment in and operations of an electronics aftersales company.
Though the finer details of the agreement were not revealed, the agreement could be aimed at diversifying the operations of Qdigi services from aftersales to sales. Amzon is one of India’s largest sellers of electronics items via its online platform. It also sells many refurbished electronics items.
Amazon would invest Rs 51 cr via Quess Corp, which would have to be used for the operations of Qdigi, the Indian company said.
Qdigi, which used to be called HCL Computing Products Ltd before being acquired by Quess Corp last year, provides after-sales services providers for consumer products like mobile phones, electronics and durables, including India’s largest smartphone brand Xiaomi and OnePlus.
The company has over 80 walk-in-centres and 200 authorised service providers in the country.
Under the new agreement, Quess Corp said, Amazon will have the right to buy shares of Qdigi Services in the future.
“The Investor [Amazon] has certain rights under the Investment Agreement with respect to the Subsidiary and its business including, inter alia: (i) right of first refusal in respect of any transfer of shares and assets of the Subsidiary; (ii) affirmative rights in respect of certain matters pertaining to the ownership, business operations and other corporate actions of the Subsidiary; (iii) a right to acquire the shares of the Subsidiary held by the Company at fair value, exercisable in accordance with the terms of the Investment Agreement and (iv) customary non-compete restriction against the Company in respect of the business undertaken by the Subsidiary; in each case, subject to the terms and conditions of the Investment Agreement.”
The exact rights that Amazon will have on Qdigi Services were not disclosed.
At present, however, the investment is being routed via Quess Corp shares. Amazon will get around 7.54 lakh shares of Quess Corp in lieu of its investment of Rs 51 cr, which works out to about Rs 676 per share, about 50% higher than the opening price of Rs 442 per share for Quess Corp today.
HCL Computing Products was acquired by Quess Corp for Rs 30 cr.