In the ongoing battle for e-commerce supremacy, Amazon has reportedly fired a fresh salvo by infusing Rs 2,010 crore into its Indian operations. This is by far the single largest investment made by the American company, and takes the total capital invested in the past 12 months to Rs 7,000 crore. Also Read - Micromax Airfunk 1, Airfunk 1 Pro starting at Rs 1,299 launched in IndiaAlso Read - Happy International Friendship Day 2021: Best tech gifts under Rs 2,000
According to regulatory filings, this capital investment was made in the month of November. On enquiring about it, an Amazon India spokesperson told ET, “We will invest what it takes to become the customers preferred choice in India, and are encouraged that we are India s largest and fastest-growing ecommerce marketplace. In an industry reportedly flat or negative, Amazon India has continued to show remarkable growth of over 100 percent this year. Also Read - iPhone SE gets cheaper on Flipkart only for today: Get over Rs 11,000 flat discount
In order to take on the dominance of Flipkart, Amazon India has been on a spending spree, and reports say this aggressive spending has been showing dividends. In the last fiscal year, Amazon’s revenues rose a whopping 116 percent to Rs 2,217 crore, while Flipkart in comparison, recorded an increase of 153 percent to reach Rs 1,952 crore. At the same time though, Amazon India has also been recording massive losses as it continues to undercut rivals and offer various discounts to woo buyers. ET cites sources claiming that the e-commerce giant lost over Rs 1,000 crore during the festive season as it offered buyers with a range of special offers and discounts. These sources further say that the company could eventually end up burning nearly $1 billion this year.
Besides wooing buyers with discounts and offers, Amazon India has also been introducing a myriad of features and services. The highlight this year has been its Prime service, that offers early deals, free shipping and more to subscribers. Last week, it also launched an extension to its Prime service, called Prime Video. To take on the likes of Netflix, Amazon India’s Prime Video service offers a large library of foreign and local content for streaming or downloading. What’s more, in comparison to Netflix’s Rs 500 per month plans, the Prime Video service costs Rs 499 per year. RELATED: Amazon Prime Video: 7 things you should know
Yesterday, Amazon India also launched its AmazonNow app in Delhi and Mumbai. This app essentially lets buyers shop for over 5,000 every-day essentials from various local stores, and also promises deliveries within two hours. The company has also introduced a wallet-like feature in India, called Amazon Pay Balance. One can use the wallet to pay for purchases on the e-commerce site, and also receive refunds quicker than online bank transfers. Amazon India is also luring buyers to start using the wallet by offering up to 15 percent cashback (maximum Rs 450) on purchases made using Amazon Pay Balance. ALSO READ: Amazon registers 10-fold growth in digital transactions after demonetization