NEW DELHI (TIP): Global e-tailing giant Amazon has invested over Rs 2,000 crore (over $310 million) in India in the past two months as it looks to consolidate its position in the country and fend off local rivals like Flipkart.
The US-based firm pumped in Rs 1,680 crore in June into its online marketplace business in India, while Rs 341 crore was invested in the preceding month in the wholesale business. As per regulatory filings with the Corporate Affairs Ministry, Amazon Corporate Holdings and Amazon.com.incs has made these investments in the two Indian entities.
The capital infusion will also provide more arsenal to the Indian entity that has been aggressively investing in expanding infrastructure and adding solutions to enhance consumer and seller experience. Last year, Amazon founder Jeff Bezos had committed investments to the tune of $5 billion into the Indian market. Estimates suggest that the company has already invested over $2 billion in the last few quarters in the Indian market.
Amazon India, which has recently completed four years of operations, has been directing its investments towards building warehouses, strengthening logistics and increasing product assortment.
Besides, money is also being invested in marketing and promotions as the company looks to bring more consumers into shopping online on its platform. Bezos, as part of investor calls, has highlighted the importance of the Indian market to its operations on multiple occasions and has assured that the company will continue to invest in India. When contacted, an Amazon India spokesperson said: “We remain committed to our India business with a long-term perspective to make e commerce a habit for Indian customers and invest in the necessary technology and infrastructure to grow the entire ecosystem.”
With Tiger Global-backed Flipkart raising $1.4 billion earlier this year, the competition is intense and the rivals are already believed to be gearing up for the festive season. Amazon has invested Rs 341 crore in Amazon Wholesale India, the wholesale B2B arm of Amazon India.
The company has also made an additional investment of Rs 1,680 crore in its India unit as it looks to further strengthen operations in the booming e commerce market. Source: PTI