Betting big on the Indian market and to compete with the biggies such as Flipkart and Snapdeal, Amazon has invested $300 million in its Indian counterpart, Amazon India. The information was revealed through documents filed at registrar of companies.
The latest investment, which is highest in terms of capital infusion, comes right after the recent round of $250 million in late december. With the latest investment, Amazon India has now received $1 billion, after Jeff Bezos announced to invest $2 billion in Indian unit in July 2014. The investment will be used to improve warehousing, logistics and marketing.
This investment comes at a time, when eCommerce players in the country are trying hard to cut losses. Just recently, Snapdeal had reported loss of INR 1328 crores on a total revenue of Rs 938 crores in financial year 2014-2015.
Indian eCommerce market has grown big in recent few years. According to an estimation by Goldman Sachs, Indian eCommerce market is set to grow to $103 Billion by 2020. The multiplied growth is one of the reasons why international players are eying on the Indian Market. With Amazon investing big in India, Alibaba is increasing its presence by partnerships and investments. Alibaba has recently partnered with PayTM and made an investment in Snapdeal. According to the latest rumors, the chinese eCommerce biggie is also looking to invest in Flipkart.
Global offline players are also keeping an eye on the Indian market to become a part of the big opportunity which lies ahead. Walmart Stores Inc, invested $53 million in its Indian unit to open over 50 stores across the country. The move by walmart is surprising because it’s considering to close over 270 stores globally.