Bengaluru: A news came by, that the world’s largest online retailer, Amazon has invested an additional ₹2,700 crore ($386 million) in its Indian unit. This additional investment made by Amazon makes a total of almost $4 billion in the five years that the company has invested in its Indian unit.
Amazon in the past bounded to make an investment of at least $5 billion in India and it also assigned $500 million in order to establish its food retail business in the country.
As per our recent sources the funds have been received by Amazon Seller Services earlier this month and the company is said to be spending all its cash on building massive warehouses, a large logistics unit, marketing, discounts and increasing product assortment.
Our sources also added that the company had committed to invest an additional $3 billion in India in June 2016 and is at present at the second position in India’s online retail market.
The investment made by Amazon in India is nothing less than an attempt by the company to give a head to head to Flipkart which is at present ruling the market under chief executive officer Kalyan Krishnamurthy.
As per news sources, both the big names in the online retail market are said to spend hundreds of millions of dollars over the next few years for the development and expansion of the firms in the country.
The commitment towards investing in India by both the firms clearly indicates its regulatory filings over the past few years.
As per the reports, in July 2014, Amazon’s authorized capital was just ₹1,500 crore when Bezos made the $2-billion commitment. But at present Amazon’s authorized capital in the country is more than 10 times the amount.
In order to perform well and stay in the market, Amazon has to keep up its aggressive pace of investments in India competing with two other big names in the market Walmart and Flipkart.