Online retail giant Amazon invests Rs 1,680 crore in India

Amazon, the world’s biggest online retailer, has invested another Rs 1,680 crore in its Indian unit as part of its commitment to invest $5 billion to expand its local business, which is locked in a battle with arch-rival Flipkart to dominate what is seen as the world’s last major unconquered Internet market.

Amazon Seller Services Pvt Ltd (Amazon India) received the funds last month, according to regulatory documents filed with the ministry of corporate affairs. In June 2016, Amazon.com Inc had said it would invest an additional $3 billion in India after the company exhausted its earlier investment pledge of $2 billion made in 2014.

Since Amazon chief executive Jeff Bezos made that initial $2 billion investment commitment in July 2014, Amazon India has already received more than Rs 15,000 crore.

Amazon has been spending all that cash on building massive warehouses, a large logistics unit, marketing, discounts and increasing product assortment. The company boasts of the largest product assortment, the most expansive supply chain and the largest seller base among e-commerce firms in India. The company’s authorised capital was just Rs 1,500 crore in July 2014, when Bezos made the $2-billion commitment.

“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,” said an Amazon India spokeswoman.

Amazon’s massive investment has yielded immediate results for the American e-commerce giant. Though Flipkart continues to be the overall market leader, including sales from its Myntra and Jabong units, Amazon India is catching up fast. Amazon is desperate to conquer the Indian Internet market, after losing out to Alibaba.com in China.