After committing $2 billion investment to support its Indian growth in 2014, now Amazon has announced another massive $5 billion investment over the next few years. It has also announced several other service launches in India including Amazon Prime by the end of this year. The company is set to add instant video and subscription-based e-commerce services for Prime users, as ET reports.
Amazon plans to launch its Amazon Instant Video (AIV) service in India this year and has already started conversations with music labels and producers for sourcing content. In December, it hired Nitesh Kripalani, a former Sony Entertainment executive, to lead its new initiatives in India.
Earlier this year, the online retailer had announced that it will be bringing its Amazon Web Services (AWS), a suite of cloud services to India by 2016. A person familiar with the matter told ET that, “Our biggest financial backer (Amazon founder Jeff Bezos) doesn’t need a fresh pitch while deciding every new investment — we are really long on India, investment figures are easily in multiples of billion dollars.”
According to a Morgan Stanley report in February, Indian Internet market could rise to $137 billion by 2020. The Indian eCommerce firms – Flipkart, Snapdeal and PayTM have already raised around $5 billion capital, with Flipkart garnering nearly $3 billion in more than one dozen funding rounds. With this Amazon’s new initiative, these companies can further decide to raise more funds to get one step closer to become India’s leading eCommerce company.