Amazon Steps The Pedal, To Invest $2B In India To Counter Flipkart


If there were any doubts about Indian E-Commerce space being just a bubble and could burst any time, you should put them to rest. Amazon have gone one-up on Flipkart’s recent $1 Billion funding raise. They have officially announced today that they plan to invest additional USD 2 billion in India.


This month, Amazon completed 1 year of launch of their India store, and the response they have got in India seems to be phenomenal. In an official statement, Jeff Bezos, founder and CEO of Amazon commented,

“After our first year in business, the response from customers and small and medium-sized businesses in India has far surpassed our expectations. We see huge potential in the Indian economy and for the growth of e-commerce in India.

With this additional investment of US $2 billion, our team can continue to think big, innovate, and raise the bar for customers in India. At current scale and growth rates, India is on track to be our fastest country ever to a billion dollars in gross sales. A big ‘thank you’ to our customers in India – we’ve never seen anything like this.”

It is quite clear from the statement made by Jeff Bezos that they are thinking big and long term for India. Undoubtedly, Jeff Bezos is the king of e-commerce space, and when he is willing to invest that kind of money in India, it is safe to say that Indian e-commerce space has huge potential for growth in coming years.

This announcement has also come at a very interesting time, just a day after Flipkart announced their eye-popping $1 Billion investment. Amazon probably wants to send a message to Flipkart that whatever you can do, we can do it bigger and better.

It’s quite amazing how Amazon India has grown over past 12 months – They now claim to be India’s largest store with over 17 million products on offer. They have rapidly increased their offerings and now span across nearly all verticals including Books; eBooks, Tablets, Kindle Devices, Computers and Accessories, Mobiles and Accessories, Consumer Electronics, Toys and Games; Baby Products; Health and Personal Care products; Watches; Fashion Jewelry, Home and Kitchen products, Music, Luggage and Bags, Sports, Fitness and Outdoor equipment, Shoes, apparels and more.

Over last one year they have also introduced many new features including expedited same and next deliveries, direct store pickups, Kirana store delivery points, CoD facility with India Post and 2 fulfillment centers. Recently they also announced that they will be additionally open up 5 new fulfillment centers in various cities.

The big money flowing into Indian e-commerce ecosystem is a clear sign of things to come. India is still at nascent stage and Amazon understands that. They want to ensure that they grab the top position before it becomes too saturated. Flipkart is also trying to get there with VC money, however, Amazon is now getting too big for their comfort.

Battle between Amazon and Flipkart is going to be an interesting one, and we will bring it to you as it happens!

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