Amazon facing a tough competition by it’s Indian rival “Flipkart” backed by Microsoft in recent time. Thus the largest online retailer, Amazon has invested an added Rs 1,680 crore in its Indian operations to fight off flipkart and dominate Indian ecosystem.
Amazon Seller Services Pvt Ltd (Amazon India) received these funds of Rs 1680 crores last month, the company said in regulatory documents filed with the Ministry of Corporate Affairs, Mint reported on Thursday.
An Amazon India spokesperson said, “We remain committed to our India business with a long-term perspective to make e-commerce a habit for Indian customers and to invest in the necessary technology and infrastructure to grow the entire ecosystem.”
In April 2016, Mint had reported that the company’s India unit had doubled its authorised capital to almost Rs 16,000 crore.
Amazon’s Jeff bezos knows that “India” is now the world’s most flourishing economy and it’s biggest population can generate more revenues for the company in long run than any other country’s in which the e-commerce player is running its operations.
In June 2016, the e-commerce platform had vowed to infuse an added $3 billion (approximately Rs 19,429 crore) in its Indian unit. This announcement followed the July 2014 declaration made by Amazon’s Chief Executive Officer “Jeff Bezos” to invest $2 billion (approximately Rs 13,305 crore) in the Indian market to build warehouses, a large logistics unit, marketing, discounts and increasing product assortment.
Flipkart, the Indian e-commerce player has founded on the footsteps of Amazon.com by initially started selling books online same as by amazon in its initial years and now Amazon is facing threat by its biggest rival “Flipkart” in India founded by bansals. The Indian company had raised $1.4 billion (approximately Rs 9,313 crore) in fresh capital from new investors including China’s Tencent Holdings, eBay and Microsoft. The company had previously bought it’s other e-commerce rivals like Mynta, Jabong etc and now planning to buy its Indian rival Snapdeal. “SoftBank” who is the prime investor in Snapdeal has been mediating the deal with Flipkart. However Softbank is more interested to cash Snapdeal’s subsidiary “Freecharge” so that Snapdeal could not generate enough money to stay stable in long run and can be eventually forced to be buy out by Flipkart.