After creating a $2 billion fund for its Indian arm in 2014, and committing another $5 billion for the same in July 2015, eCommerce firm Amazon has invested an amount of $190 million (Rs 1,237 crore) into its Indian arm- Amazon Seller Services, making it the biggest investment into its Indian firm since it entered the country in 2013.
The funds will be used to expand its network of warehouses, data centres and improve upon its online marketplace service to compete better with local rivals. Recently, Amazon also announced the launch of its 21st fulfilment centre in India.
Talking about the investment, Amazon India spokesperson said, “We are very excited by our growth and continue to invest in technology, especially mobile, infrastructure and logistics to support seller capability in order to deliver value to our customers.”
As per a filing with the Registrar of Companies (RoC) last month, Amazon Seller said it is raising money through allotment of equity shares to its US parent company, as reported by ET.
As Amazon’s founder and chief executive Jeff Bezos had said, India is one of the fastest growing markets for the company, its business in the country is worth $2 billion GMV on the eCommerce side. A few months back, Amazon invested a sum of $177 million (INR 1,155 crore) into its firm.
In July 2015, its rival Flipkart had secured an amount of $700 million (Rs 4,500 crore) at a valuation of $15 billion. In August 2015, Snapdeal raised an amount of $500 million from Alibaba, Foxconn and its existing investor Softbank, making the valuation of the company $5 billion. Recently in September 2015, Chinese eCommerce firm Alibaba Group and its payments arm Ant Financial Services Group have agreed to make an investment upto $680 million (for 40% equity) in Indian mobile payment & commerce platform, Paytm.
With festive season round the corner, the competition among these eCommerce firms is going to tighten up as each one of them will try their best to grab the most customers, and sellers as well.
Flipkart has already announced its Big Billion Sale which will be held between the 13th and 17th October, 2015. Once again it is hosting the sale prior to Diwali, which last year mainly saw US based Amazon faring better. With Paytm also getting aggressive by the day, how will the players fare.