Amazon has made its second big investment in India within a month. After pumping in Rs 1,620 crore early October, the Seattle-based e-commerce giant has invested an additional Rs. 2,900 crore, according to reports. This is Amazon’s third capital infusion in Amazon Seller Services’ India this year, taking the total investment up to Rs 17,840 crore (roughly $2.6 billion). And that’s just half of the $5 billion Amazon has committed to India — its fastest-growing territory now.
Amazon Seller Services has also passed a resolution to increase its authorized share capital from Rs 16,000 crore to Rs 31,000 crore. This essentially means that it would be investing in other units of the business like cloud services, payments, logistics and so on. “As India’s largest and fastest-growing e-commerce player, and with a long-term commitment to make e-commerce a habit for Indian customers, we continue to invest in the necessary technology and infrastructure to grow the entire ecosystem,” Amazon India said in a statement. ALSO READ: Prime Video and Echo to be Amazon’s focus areas in India now: Report
Amazon is doing two things in India right now. First, it is ramping up its logistics and distribution by investing in warehouses, fulfillment centers and so on. Second, it is expanding its consumer offerings through services like Amazon Pay, Amazon Prime, and now, Amazon Echo. “Our investments are still squarely in the same three areas — how do we add more selection, how do we make it easier for sellers to offer more competitive prices and how do we build for faster deliveries… A layer on top of that is that we keep investing in Prime —so video, music, Echo, are our key areas,” Amit Agarwal, Country Head, Amazon India said in a recent interview. ALSO READ: Amazon steps up investments in India, pumps Rs 1,620 crore in marketplace unit: Report
Meanwhile, Amazon’s key Indian rival Flipkart has had an eventful year too. After a failed acquisition bid for Snapdeal, Flipkart scooped up eBay India, and later went on to received a massive $4 billion in funding from SoftBank, Microsoft and others. Since then, the homegrown e-tailer has been scouting for expansion opportunities across e-commerce verticals. It has explored talks with startups in food-tech, hyperlocal services, furniture retail, e-grocery, and so on. Flipkart and Amazon India are the top two players in India’s $15 billion e-commerce industry. While the former is powered by investor money and external partnerships, the latter is backed by a giant parent and has gone the organic growth route.