Amazon pumps in another Rs 2,700 crore in Indian marketplace business - VisionThugs

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Wednesday, August 15, 2018

Amazon pumps in another Rs 2,700 crore in Indian marketplace business


US-based online retailer Amazon has made a fresh investment of Rs 2,700 crore in India unit. The fresh capital infusion will beef up Amazon's war-chest against Indian e-commerce market leader Flipkart, which has joined hands with Walmart. Amazon has so far invested nearly USD 4 billion in its India operations.
The Seattle company also pumped in Rs 100 crore into its food retail business Amazon retail.


After having achieved its previous target of investing around $2 billion in India, Amazon Inc Chief Executive Officer Jeff Bezos had said in June 2016 that the company would invest an additional $3 billion in the country.
Amazon has used the previous investments to build massive warehouses, a large logistics unit, and for marketing, offering discounts and increasing product assortment, all aimed at stepping up its battle against Flipkart

Amazon would want to push aggressively this festive season and beat Flipkart on a standalone basis in terms of marketshare,” said Satish Meena, senior forecast analyst at Forrester. Forrester’s recent data had shown Amazon had a marketshare of 31.1%, while Flipkart Group had a marketshare of 39.5%, with the standalone ecommerce entity having a marketshare of 31.9%. 
Amazon received the latest tranche on August 6 from Singapore-based Amazon Corporate Holdings and Mauritius-based Amazon.com, while Amazon Retail received the tranche of July 31 from the same entities, the filings show. 

The American company has also been pumping funds into its other entities in India, including Amazon Pay and wholesale business. These investments have been directed towards building warehouses, strengthening logistics and increasing product assortment.
Amazon is also investing significant money in marketing and promotions as the company looks to bring more consumers to its online shopping platform.

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