Saturday 22 October 2016

Amazon to Invest $2Bn in India, Closes In on Rs 6K Cr Sales

New Delhi

Upping its ante, e-Commerce giant Amazon today said it will invest USD 2 billion (over Rs 12,000 crore) in India to expand business, a day after its largest Indian rival Flipkart announced USD 1 billion in funding.

Flipkart yesterday said it has raised over Rs 6,000 crore from existing and new investors, the largest funding in the nascent, yet rapidly expanding Indian e-commerce sector.

Amazon, which launched its marketplace in India last year, said the country is one of its fastest growing markets and is on track to touch USD 1 billion in gross sales.

It will invest an additional USD 2 billion to support its rapid growth and continue to enhance the customer and seller experience in India, Amazon said in a statement.

"After our first year in business, the response from customers and small and medium-sized businesses in India has far surpassed our expectations," said Jeff Bezos, founder and CEO of the US-based Amazon.Com.

The company sees huge potential in the Indian economy and for the growth of e-commerce, he added.

"With this additional investment of USD 2 billion, our team can continue to think big, innovate, and raise the bar for customers in India," he said.

At current scale and growth rates, India is on track to be Amazon's fastest country ever to a billion dollars in gross sales, he said.

"We have never seen anything like this," Bezos said. In India, Amazon sells over 17 million products across categories like books, apparel and electronics from a growing base of thousands of small and medium-sized businesses.

Apart from smaller e-commerce portals, Amazon competes head on with Flipkart and Snapdeal. In the past few months it has raised the bar with introducing same-day delivery and ramping-up its logistics among others.

Earlier this week, Amazon said it will open 5 new centres across India in addition to its two fulfilment centres (FCs) in Mumbai and Bangalore. The FCs will be set up in Delhi, Chennai, Jaipur, Ahmedabad and Tauru (outskirts of Gurgaon).

This, it said, would help in faster delivery of products. With the addition of the five centres, Amazon's total storage capacity will almost double to over half a million sq feet.

© Copyright PTI. All rights reserved. Republication or redistribution of any PTI content, including by framing or similar means, is expressly prohibited without their prior written consent.
WB Govt Appeals Against HC Order on Tapas Pal Female Urdu Poets Used Ghazals for Social Commentary
Download the Outlook ​Magazines App. Six magazines, wherever you go! Play Store and App Store

Post a Comment

You are not logged in, please Log in or Register
  • Daily Mail

More than a decade after India first started the procurement process, it has finally inked an €8bn agreement to buy 36 Rafale fighter jets from France’s Dassault. The original deal was to buy 126 Rafales to replace the accident-prone Russian MiG-21s. Ultimately, the government offered to buy only 36 ready-to-fly planes.

POLL STARTED ON: Sep 26, 2016
Brazil’s Rio de Janeiro is hosting the 31st Olympic Games from August 5 to 21. This is the first Olympics being held in South America and is going on even as a majority Brazilians are unhappy with their rulers. Here’s a quiz on some random Olympic facts and related trivia.
QUIZ STARTED ON: Aug 11, 2016