E-commerce giant Amazon has invested an additional $250 million into its India operations according to a filing made to the registrar of companies. The investment comes amidst Amazon’s growth phase in the Indian market where it competes with its major rival Flipkart. Amazon has already invested more than $2 billion in its India arm staying true to its commitment to grow in one of the largest markets in the world.
This $250 million, or Rs.1,620 crore, investment dated September 15 comes from two entities of Amazon namely Singapore-based Amazon Corporate Holdings Pvt. Ltd. and Mauritius-based Amazon.com. It is believed that the additional investment will help the company improve its logistics and warehousing facilities in India.
In July 2017, the company invested $260 million in India taking its total capital investment to $2.1 billion. With this additional capital infusion, the company is on track to reach its target of $5 billion investment in India. While announcing the 2017 first quarter results, Jeff Bezos said that the company would invest about $5 billion in India. He also maintained that India is one of the fastest-growing markets for the company.
This additional investment comes amidst the company’s ongoing festive season sales. While the exact figures are yet to be determined, Amazon’s estimated market share in the online festive season sale is about 35%. Its primary rival Flipkart is still leading the e-commerce market in India and is believed to have sold more merchandise than Amazon during this festive month.
In August 2017, Flipkart also received a major funding from SoftBank, the world’s largest technology investment firm. While the exact investment amount is not determined, some estimates put it at $2.5 billion. With both companies receiving major funding, the e-commerce sphere in India is all set to get more competitive in the upcoming days.